The new and improved home buyer tax credit is official and took effect Nov 9, 2009. The extended and expanded legislation extended the first-time buyer tax credit through May 1, 2010 and includes a tax credit to repeat home buyers.  

Home Buyer Tax Credit Expansion and Extension 

1. The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.
2. A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
3. Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
4. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
5. Limitation on the cost of a purchased home is $800,000. 

If you know anyone looking to buy their first Dallas home at a time when prices and interest rates are still down, or if you are thinking of buying another Dallas home and getting the new $6,500 credit please contact me today.

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Something to consider when selling your Dallas home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your Dallas home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains. 

Calculating Capital Gains

(+) PURCHASE PRICE – Price paid for property

(+) COST OF PURCHASE – Transfer fees, attorney fees, inspections

(+) COST OF SALE – Repairs, commissions, attorney fees, inspections

(+) COST OF IMPROVEMENT – Room additions, deck, for example, though not replacing existing

(=) ADJUSTED COST BASIS OF YOUR HOME

(-) AMOUNT YOU SELL YOUR HOME

(=) CAPITAL GAIN 

A Special Real Estate Exemption for Capital Gains

Even though the above calculation may indicate you owe Capital Gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Dallas home is exempt from taxation if you meet the following criteria: 

• You have lived in the home as your principal residence for two out of the last five years. 
• You have not sold or exchanged another home during the two years preceding the sale. 

NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls “unforeseen circumstances” such as job loss, divorce, or family medical emergency. 

Learn more about selling your Dallas home by visiting TexasHomeCentral.com.

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Always consult a tax attorney regarding current tax laws.

The most important piece of a person’s financial life is their credit score. Whether buying a new Dallas home, applying for a job, refinancing your Dallas home, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Do not let these credit score myths get in your way when preparing for the purchase of your next Dallas home.

Myth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Myth: Age, sex, and income are factors that affect your score. None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.   

Myth: A credit score can be destroyed by shopping for a loan. When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.

Myth: Your score can be hurt by credit card offers.
When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.

Myth: Credit scores of married couples are shared.
A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.

Myth: Closing unused accounts improves credit scores.
Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.

Myth: Paying off bills is a quick way to boost credit.
Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.

Learn more about how credit scores affect the amount of Dallas home you can buy at TexasHomeCentral.com.

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New tax code changes create benefits for owners of a Dallas home. For years, many people have usually turned away from considering taking on the financial responsibilities of being a homeowner. Renters and prospective home owners are well aware of all the financial stress that comes with owning a home, which makes them hesitant to make the big step and commitment. What might not be known is that homeowners are receiving more tax benefits now than ever before. The Internal Revenue Services, known as the IRS, has made owning a Dallas home a more favorable option in several ways.

Monthly house payments bring the biggest tax benefit to home owners. The interest included in the monthly mortgage payments is tax deductible as long as the loan is for less than a million dollars. IRS guidelines also allow deductions for interest on refinancing and home equity loans. However, they do put limits on how much is actually allowed to be deducted. Borrowing against the equity of your Dallas home is an option renters do not have. Renters also do not have the ability to file federal tax deductions on their monthly rental payments.

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Buyer’s often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Dallas real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop. 

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Dallas real estate at an advantage over those trying to sell. People have best described this as a buyer’s market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Dallas real estate prices are not always worth the wait. 

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There were 3,239 foreclosed homes in Collin County with an average sales price of $206,001 with 642 new foreclosed homes in July 2009, according to RealtyTrac.com. Foreclosed homes sold 15% less than other homes with the average sales price for all Collin County and Dallas homes being $242,160.

Collin County and Dallas Foreclosure Activity and Home Price Index

Collin County and Dallas foreclosure activity increased dramatically in July with 139 more foreclosures than in June.  At the same time, the Home Price Index remained relatively unchaged from June.

Collin County and Dallas foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or repossession notice – each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

Collin County and Dallas Foreclosure Geographical Comparison

Collin County Dallas foreclosure activity is 0.06% lower than national statistics and 0.09% higher than Texas figures.

Collin County and Dallas Foreclosure Activity by Month

The significant increase of Collin County and Dallas auction and bank-owned activity in July indicates we will see many more foreclosures in the coming months.

Are you or someone you know behind on your mortgage payments and facing a Dallas foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home.  As a Certified Distressed Property Expert (CDPE), I have the skills and knowledge to help save you your home and your family. Give me a call for a private consultation.

In order for you to qualify for a short sale when selling your Plano home or DFW area home, you must show proof of a financial hardship. Proof must be in the form of a signed letter submitted to the mortgage company along with additional support documentation.

Acceptable Financial Hardships

A hardship is a material change in your financial situation that is or will affect your ability to pay the mortgage on your Plano TX home. Acceptable hardships are:

1. Loss of job
2. Business failure
3. Damage to property
4. Death of a spouse
5. Death of family members
6. Severe illness
7. Inheritance
8. Divorce
9. Mandatory job relocation
10. Medical bills
11. Military service
12. Payment increase or mortgage adjustment
13. Insurance or tax increase
14. Reduced income
15. Separation
16. Too much debt
17. Incarceration

Also, you must be financially insolvent for the lender to consider accepting a short sale. This means you owe more on your Plano TX home than you have in liquid cash or assets that could be used to buy-down the mortgage. A short sale is not a ‘get out of your mortgage Free card’. You must be in financial distress.

If you or someone you know are in a distress situation, don’t hesitate. Call me at 972-562-0896! Every moment counts. I am a Certified Distressed Property Expert, specializing in Short Sales and I can help save your your home and your family!

North Dallas home owners who are behind on their mortgage payments have options other than foreclosure. Below are possible strategies to avoid foreclosure.

Short Sale
Lender agrees to sell the property for less than the loan balance for homeowners facing a hardship.

Mortgage Loan Reinstatement
Paying all missed payments, late fees, and legal fees that are due up to the date the loan is re-instated.

Forbearance or Re-Payment Plan
Negotiating a repayment plan to pay the monies due over a period of time.

Mortgage Modification
The interest rate is lowered on the existing loan to lower the payments.

Refinance
The loan is replaced with new financing at lower interest rates. Sometimes the homeowner’s credit is too badly damaged for this option.

Short-Refi
Refinancing with a reduction in the principal balance, as well as the interest rate.

Rent the Property
Lease the property to keep up with mortgage costs.

Deed-in-Lieu of Foreclosure
Referred to as a ‘friendly foreclosure,’ with the homeowner giving the deed back to the bank.

Service members Civil Relief Act (SCRA)
Temporary relief provided to service members.

Bankruptcy
Bankruptcy stops foreclosure giving the homeowner time to reorganize his debt.

As a trained Certified Distressed Property Expert, I have the skill and knowledge needed to help assess your individual situation so you can choose a strategy to avoid foreclosure based on an educated decision. Give me a call for a private consultation. I can help save you, your family and your home.

Being in a distress situation and facing foreclosure and the the loss of your DFW area home can be devastating.  Many Plano TX home owners simply give up once they miss a mortgage payment. Below are reasons why you don’t want to give up and should seek help to avoid a foreclosure:

• You will always have to disclose that they have had a foreclosure on future mortgage applications and many job applications, having an adverse affect on future borrowing and employment. 
• A foreclosure on your credit report can have an adverse affect on future borrowing rates.
• Your credit score will be lowered by 300+ points.
• Foreclosure is the one credit report item that is almost impossible to “repair.”
• Your lender can seek a deficiency judgment after the foreclosure, meaning that the foreclosure is not the end of financial burden.
• Many employers run credit checks as part of the hiring process, meaning that a foreclosure could put future employment in jeopardy.
• Many employers run periodic credit checks on current employees, which can put current employment in jeopardy.
• Security clearances and government positions such as military service and law enforcement can be jeopardized by foreclosure.

As a Certified Distressed Property Expert, I have the skills and knowledge needed to help you and your family avoid foreclosure.

Do not hesitate to call me at 972-562-0896! Every moment counts. My team is experienced in short sales and we cover the entire DFW area.

Buyer’s often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Dallas real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop. 

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Dallas real estate at an advantage over those trying to sell. People have best described this as a buyer’s market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Dallas real estate prices are not always worth the wait. 

Buyer’s should not be waiting for interest rates to continue declining, especially since real estate and economy experts are predicting that the lowest rates have come and gone. This is not necessarily a horrible thing. Rates are still lower than historical highs, which exceed 6.00%. With the new administration trying to bring back the economy, many analysts see a period of severe inflation in our future. Meaning interest rates are likely to jump even higher. The Federal Reserve introduced a program to help control interest rates on home loans. For example, the rates for a thirty year fixed-rate loan have been consistently ranging from 4.50% to 5.00%. Now, rates for this type of loan and the rates of other types of real estate loans are beginning to exceed their more reasonable range. Therefore, increasing interest rates may start rushing your desired closing date. 

At the end of May buyers, who have been procrastinating by waiting for lower interest rates or price reductions, learned their lesson the hard way. At the end of the month interest rates went up about .50%-1.00%. Increasing interest rates defeats the purpose of waiting for Dallas real estate prices to drop. Higher interest rates decrease the overall affordability and increase the monthly payments, especially when the price of the desired home does not budge. 

Bottom line, it is not a time to be waiting around. Time is running out to take advantage of the current real estate market and loan programs being offered by the government. For instance, first time home buyers have until December 1^st, 2009 to close on their home if they want to be eligible for a maximum tax rebate of $8,000 dollars. Since interest rates are expected to increase, waiting for real estate prices to drop is not worth the wait. Don’t procrastinate. You might unintentionally pass up a piece of gold trying to find a diamond. 

Search all Dallas real estate and homes for sale by visiting TexasHomeCentral.com.