April rains and HAFA

April brought with it more rain and some new guidelines for short sales. The new HAFA or "Home Affordable Foreclosure Alternatives Program" is designed to help homeowners avoid if they chose to do a short sale or Deed-in-Lieu foreclosure. Only time will tell if this really helps the process or not. Read the whole story on the HAFA website. Read the whole story at the website  http://www.makinghomeaffordable.gov/hafa.html

Spring is here and we are at 105

We have now hit 105 homes on the market in Alameda. For quite a long time we have had a low inventory below 100. This can be a chicken and egg scenario with buyers. If nothing new is coming on the market buyers are not as interested and so fewer homes sell.  This can be expected in the winter months, it's common to have a seasonal slowdown. Spring is here and so are new homes and with it some excitement and interest from buyers. Of course it's always the case that the best homes can get most of the interest while some that have been on the market get stale and suffer from lack of interest. Pricing is even more key because if these homes stick around and do not go through price reductions then they really get forgotten about. In this environment pricing is key no matter where the home is.

2125 Spaulding New Listing in Berkeley

This Victorian sits on a charming tree lined street in central Berkeley and has been completely remodeled top to bottom. With a new kitchen, bathroom and furnace. Hardwood floors and mostly new dual paned windows. Many upgrades to systems, plumbing, electric. New foundation and seismic upgrades with the basement ready to finish out to create your own expansion possibilities. Large & lush landscaped yard to garden or entertain. Walking distance to shopping and North Berkeley Bart.
So much more than the stats show you have to see it to get it! More photos at 2125spaulding.com

1412 Seminary New listing

Come discover this hidden gem. Located on a quiet private driveway this cozy Bay Farm home has an updated kitchen and bathroom. With hardwood floors and dual paned windows you can walk out your dining room to a spacious backyard overlooking the golf course. Perfect for entertaining, gardening or relaxing. Close to Godfrey park, shopping and in a desirable Alameda school district. This home is move in ready. OHSun 3/14 2-4 pm. See more photos on my website at 1412seminary.com

First time homebuyer tax credit

The first time homebuyer tax credit effectively ends on April 30th. This is an $8,000 tax credit for homebuyers. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
Read more here.

IRS rules for claiming first time homebuyer tax credit

The Internal Revenue Service recently released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the first-time homebuyer credit.

With the release of Form 5405, First-Time Homebuyer Credit and Repayment of the Credit,and the related instructions
, eligible homebuyers can now start to file their 2009 tax returns.

In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:

* A copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
* For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
* For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

In addition, the new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:

* Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
* Property tax records or
* Homeowner’s insurance records.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on theFirst-Time Homebuyer Credit page
on IRS.gov.

Source: IRS.gov

More short sale shenanigans