Best Solution & Investment

Georgian Bank, 4 others issued regulatory censures - Atlanta Business Chronicle:

2009-09-26T10:53:00.000-07:00

Georgian Bank, 4 others issued regulatory censures - Atlanta Business Chronicle:

The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know

2009-06-27T20:01:00.000-07:00

May 29, 2009 04:54 PM ET | Luke Mullins | Permanent Link | Print

As the historic housing plunge rumbles on, Uncle Sam is offering a fresh incentive to get first-time home buyers off the sidelines. U.S. Housing and Urban Development Secretary Shaun Donovan on Friday unveiled a policy change that would provide home buyers with quicker access to a recently enacted first-time home buyer tax credit. Buyers would be free to put the funds toward closing costs and a portion of their down payment. The federal government hopes that the measure will stimulate housing demand, something desperately needed to help mop up the glut of unsold inventory.

[See New Home Buyer Tax Credit: 7 Things You Need to Know]

Here are five things you need to know about the policy change:

1. Less waiting: President Barack Obama's $787 billion economic stimulus plan—which was signed into law in mid-February—included a tax credit worth up to $8,000 for qualified first-time home buyers. These buyers, however, couldn't get their hands on the cash until after tax season. The new HUD initiative would enable these borrowers to obtain short-term loans allowing them to tap the tax credit before going to closing. "Families will now be able to apply their anticipated tax credit toward their home purchase right away," Donovan said in a news release. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

[Check out 7 Simple Steps to a Dirt-Cheap Mortgage.]

2. Initial 3.5 percent: The measure, however, comes with several key limitations. First, it only applies to Federal Housing Administration mortgages. More importantly, the short-term loans can't be used to pay for the minimum 3.5 percent down payment that FHA loans require. Instead, the loan can be used for closing costs and to finance the portion of the down payment that exceeds the 3.5 percent threshold. The administration opted to have borrowers come up with the initial 3.5 percent themselves to ensure that buyers have "some skin in the game," which may reduce the likelihood of default, says Howard Glaser, a mortgage industry consultant and a former HUD official. In so doing, federal officials had to strike a delicate balance. "On the one hand, you want to make sure that homes are affordable to first time home buyers, but you don't want to set the bar so low that people who can't afford homes are buying homes," Glaser says.

3. Closing costs: Despite these limitations, the benefits of the program should not be overlooked, says Guy Cecala, publisher of the trade publication Inside Mortgage Finance. "The down payment is probably the biggest chunk of change you have got to pay [when purchasing a home], but it is not the only thing," Cecala says. "Even with a typical FHA loan, there are probably $3,000 to $4,000 in closing costs, title insurance, and [additional fees]." By chipping in toward such costs, the program "could just grease the wheels for a couple more people to get into FHA," says Keith Gumbinger of HSH.com. At the same time, borrowers who use the short-term loan to increase the size of their down payment could obtain a lower mortgage rate.

4. Impact? Cecala doesn't believe the new measure is a game changer for the battered real estate market. "I think it will be helpful to a first-time home buyer," he says. "Is it going to generate a lot more housing activity? No." Cecala argues that would-be buyers remain on the fence largely out of a concern that a home will lose value after the purchase. Such concerns will continue with or without the policy change.

Glaser, however, is more optimistic. "This is the missing piece," he says. "Home prices are coming down significantly in some markets, interest rates at historic lows, and now, by addressing cash on the table at closing, I think that borrowers who wouldn't have otherwise been in the market are going to feel more confident about investing in a home."

5. State efforts: The details of the HUD initiative come after several states have enacted similar programs. Missouri, for example, has had a program in place since January that enables home buyers to put the tax credit towards closing costs or their down payment.

First-Time Home Buyer Tax Credit: 6 Things to Know

2009-06-27T19:44:00.000-07:00

While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income

limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

2009-06-27T19:31:00.000-07:00

Will the $8,000 First-Time Home Buyer Tax Credit Expand to $15,000?

June 12, 2009 05:31 PM ET | Luke Mullins | Permanent Link | Print

In an effort to jump-start the ailing housing market, Sen. Johnny Isakson, a Republican from Georgia (and a former real estate professional) has introduced legislation that would beef up the tax credit for first-time home buyers. Under the terms of his bill, which was introduced Wednesday, the size of the credit would expand to a maximum of $15,000 from the previous cap of $8,000, and it could be taken by anyone who buys a primary residence, instead of only by first-time home buyers. The bill would also remove the income limits that had prevented individuals making more than $75,000 a year from claiming the credit, which would be available for a year after the date of the bill's enactment.

[See First-Time Home Buyer Tax Credit: 6 Things to Know ]

Isakson played a crucial role in establishing the $8,000 tax credit and believes it has been successful in bringing first-time home buyers into the market. But he argues that the current tax incentive is insufficient because it misses a second set of buyers who are essential to a housing recovery. "We don't have a recession in first-time home buyers," a statement from the senator said. "We have a recession in the move-up market." The legislation aims to convince these "move-up" buyers that, despite falling real estate prices and mounting job losses, now is the time to buy that larger house.

[Also see our 2009 list of the Best Places to Live.]

Bringing the move-up buyers back into the market is a key for a housing recovery, says James Gillespie, president and chief executive of Coldwell Banker Real Estate. "There are so many people out there that have had a lifestyle change that has taken place in their families in the last three or four years—whether it is a birth, multiple births, a marriage, a job promotion—and they are either still in their apartment or they are in their starter home or their second home, knowing that they should be moving up," he says. Given the current market turbulence, many such buyers remain on the sidelines because they are concerned that if they buy a home today, it could decline in value in the future. "A $15,000 tax credit takes that [concern] off the books," Gillespie says.

[Check out The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know]

Senator Isakson's bill would give a significant boost to the real estate market, says Mark Zandi, chief economist at Moody's Economy.com. "I think it would have a meaningful impact on the housing market," Zandi says. "I don't think it puts an end to [the slide in home prices], but I think it helps to ensure that they don't crash further."

Industry groups have thrown support behind efforts to expand the first-time home buyer tax credit. The Business Roundtable pledged its support this week for key provisions of Isakson's bill, and the National Association of Realtors and the National Association of Home Builders also are in favor of expanding the scope of the credit.

But Isakson's bill faces an uphill battle in Congress. With the public growing increasingly frustrated with federal bailouts and massive government spending, lawmakers won't be eager be to sign off on a second handout for home buyers. Isakson says his bill would cost about $32 billion over one year.

"The overall concern is the funding," Gillespie said after he returned from a trip to Washington to rally support for expanding the tax credit. Gillespie met with a handful of members of Congress, including House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat.

"Is there going to be any dramatic action [on the legislation]? I don't think so," Gillespie continued. "But the message was definitely heard, and they totally understand that housing is vital to our economy."

"In the Senate, I think it will pass. It's the House where I worry about the most opposition," Isakson said in an interview.

Could that outlook change? It's possible. If mortgage rates—which have gone up sharply in recent weeks—continue rising, Congress could come to see the expanded tax credit as a viable option to offset escalating housing costs. Or another sharp drop in housing or economic data could convince lawmakers that additional tax incentives are needed. "My guess is that if the economy does continue to struggle . . . if these rates stay higher and the scenario that the recession will end this year is wrong, then there will be another stimulus package early next year, and [the expanded tax credit] could be part of it," Zandi says.

Eight Steps To Sell Your Home

2009-04-27T10:18:00.000-07:00

Eight steps BS&I take to sell your home

1) sign you with one of our real estate specialist. Because of all the things that need to be considered and to ensure appropriate research, negotiations, and contracts are handled, it's strongly recommended that you speak to one of our real estate specialist to guide you through the process of selling a house. The benefits of using our real estate specialist are many and will only simplify things if you are not experienced in these matters. Our real estate specialist can help you achieve your goals by formulating a real estate marketing plan that meets your expectations and finds buyers that meet your conditions.

2) Identify the current value of your house. Here, you (or our real estate specialist ) will research the most recent sales prices of comparable properties in your neighborhood, understanding that the price of a house depends on the interior and exterior conditions of the property thereby helping you identify how to value your house. You can get this information via different websites that offer online home values. A local real estate agent will also be able to gather updated information and determine the right price of your home from other comparable prices in your area.

3) Get it ready to market. Do all the necessary inspections before we put your house on the market, or to a buyer. All we ask for is prepare your house to be visited frequently; sometimes investing in simple repairs could increase the value of your house by thousands.

4) Make your home price attractive. We all want to get as much as we can for our house. That is why getting a good, realistic valuation is of the utmost importance when selling a house. Once you know the real worth of your home, you can price it attractively enough to sell with the assistance of our real estate specialist . Set the price at an acceptable range, but a little lower than expected so that you can move it quickly. Overpricing a house (led by emotional pride and economic concerns) are easily the two main reasons why homes don't sell well. You want to attract buyers and make them feel like they can't pass up the deal. Remember, you have competition from other nearby home sellers. When selling a house, make your option the most attractive in price, reliability, and conditions.

5) Marketing your home. Reaching the buying public and getting the word out that you are selling your house is what our main focus are. The important part is making sure that the right form of marketing is being used to reach the targeted audience. Different tactics might be needed to make sure your home is seen in a positive way. Things that might seem small like good lighting, pictures, and landscaping go a long way in selling your house to the different types of buyer sets. Our real estate specialist is always valuable in this instance for his or her industry expertise when a homeowner is selling a house.Newspapers, flyers, real estate marketing online, , open houses, and the assistance of a local real estate agent will help in the overall marketing plan to make sure the word gets out that you are selling your house and interested buyers stop in.

6) Negotiate and agree on price and terms. Be as clear as you can with that specialist you are working with selling a house. Be specific on how much money you want for your property. Write down all the terms when you accept the offer, including any improvements or repairs that you agree to make.

7) Get the home ready for closing (inspection, appraisal, perform fixes, etc). Once the terms and conditions have been agreed upon and the house is up for closing, make sure all improvements or repairs are complete and that your house is ready for a possible inspection. According to the American Society of Home Inspectors (ASHI), a general inspection includes a thorough evaluation on the following aspects of the house:
Structural elements: construction of walls, ceilings, floors, roof and foundation
Exterior evaluation: wall covering, landscaping, grading, elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights and exterior receptacles
Roof and attic: framing, ventilation, type of roof construction, flashing and gutters
Plumbing: identification of pipe materials used for potable, drain, waste and vent pipes, including condition
Systems and components: water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers
Electrical: main panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures
Appliances: dishwasher, range and oven, built-in microwaves, garbage disposal and, yes, even smoke detectors.

8) Closing, the last and most important step in this journey. This will takes place in an attorney's office where the required documents are signed in order to transfer your property to the new owner. Cash or financing is provided at this point of sale in exchange for a legal title and ownership of the property. Legal rights and responsibility are passed to the buyer at the moment, and hopefully, you will have had the chance to leave behind many great memories from your time there.

Rent To Own

2009-04-27T09:19:00.000-07:00

Rent To Own

The current real estate market lends itself to Rent-To-Own home sales. Why are many potential home buyers contemplating this option? There are many reasons behind the rent-to-own home buying trend in the current market. Although, renting your home before buying, is not preferred by some buyers, the lease purchase option may prove to be a wise choice for first-time home buyers. To determine if this is your best option, you must first understand what it means. Following is a summary of why you might want to consider lease purchase home buying.

Improve Your Credit Score

You may prefer a rent in order to build up credit scores before attempting to become a homeowner. Improving your credit rating before applying for a home mortgage loan is important. Lending companies look closely at credit ratings to see if you are qualified. Your actual rent payment builds up your credit score. At the same time, you can work at reducing your other debts, such as credit card debt, car loans and student loans.

Other Benefits to leasing Agreements

Rent-To-Own before you buy will give you an understanding of what goes with living in this particular house. This will be an excellent time to evaluate your role as a homeowner and getting to know the property and neighborhood. You'll have the opportunity to care for the home on a daily basis and what kind of repairs may be necessary. As you enter into a rent-to-own agreement (often referred to as a lease purchase option), you agree to move into the home. Expect the standard move-in expenses such as a security deposit. A lease purchase option means that you have the right to buy your home at a certain date for a previously agreed upon price. Most purchase-option homes also require an extra deposit (sort of a down payment) that is due at signing, which means that the owner can't sell the house during the term of the lease. In most cases, additional monthly payments can be made and applied towards the purchase price of the home.

Know Your Rent-to-Own Contract

There are responsibilities that come with signing a lease purchase option agreement. Make sure that you are fully aware of all the conditions and terms of this agreement. There are also lease purchase contracts where you are promising to buy, it is not an option. You must be sure to make all of your monthly payments in a timely manner. Failure to do so may nullify your right to buy the home, plus you also lose any additional money that you have paid during the rental period. At the end of the lease, you should be able to qualify for a mortgage on the home you may not have been able to, had you tried to purchase it at the beginning of the lease. Some leaseholders decide that this isn't the home for them and move on to another home and neighborhood. Whichever way it turns out, rent-to-own can be a positive experience.

The basic steps to buy a home

2009-04-25T10:41:00.000-07:00

Better Solution Investment help customers through each of the steps to buying a home, providing guidance to those who need it. Purchasing a house is not simple, and you'll likely be in need of home buying assistance along the way. If you follow these basic steps to buying a home, however, you'll soon be on your way to owning your very own property.

When it comes to purchasing a house, many people believe they know the basics but not the detailed steps to buying a home. This article can help those individuals in need of a guiding hand who are searching for and ready to begin purchasing a house. While most new buyers may turn to real estate agents for home buying assistance so they can be guided and counseled through the process of purchasing a house, others just want to get a good overview of the things they are going to encounter, and the following information will be a big help along the way.

1. Identify what type of home you want. This is the first of the initial steps to buying a home and is highly important. Ideally, what you want to consider at this stage is what will suit you best. Among the many choices you might be facing, you need to consider the number of bedrooms and bathrooms for all the family members, proximity to work and schools, school districts, amenities that a home and the area will provide, the area's safety, and maybe even the percentage paid for taxes. The better you are able to identify what you want when purchasing a house, the easier it will be to drill down when searching and not waste your time in homes that will not interest you. You will have a targeted focus that gets you straight to the home you want to live in.

2. Get financially pre-qualified. This is one of the crucial steps to buying a home that needs to be done! It is a relatively quick process of understanding your financial well-being and seeing how much of a house you can afford. It is important to have this done by a financial institution that does mortgages because they will be able to look at your entire financial picture. The more accurately this is done, the easier the financing will be when you begin purchasing a house.

3. Begin your home search Now! that you know where you stand financially and know what type of home you want, begin your search through the many properties available in your area. I strongly encourage people to work with real estate agents as they are able to give you great guidance as to some of the things you might be considering and looking for in a property. Also, they have access to a lot more information - from details and helpful steps to buying a home to layouts and pictures - much more than you would be able to acquire yourself.

4. Make an offer. Once you've found a home that matches your search criteria and budget, one of the next steps to buying a home is drafting a written contract (offer letter) to the seller with the purchase price you are willing to pay, any terms and conditions you are looking for in the deal, and remaining responsibilities by both parties (buyer and seller) so that a sale can be executed and the process of purchasing the house can begin. This important stage in purchasing a house is another great reason why I support and encourage the use of agents. Here they will be able to help you with information on how comparable home in the area have done. This will ensure that your offer is adequate and that you do not have to pay more than what would be needed. Real estate agents also have experience drafting offer letter contracts that may be filled with legal terminology and can often be confusing.

5. Negotiate and agree to terms with the seller. One of the next big steps to buying a home is negotiation. If your offer matches all the conditions that the seller was seeking, the offer will probably be accepted. Realistically, this rarely happens, and negotiations between both sides will take place once the seller counteroffers. If you're still interested in purchasing the house, you may have to negotiate price, financing terms, repairs, closing and move-in dates, and other things that each party may find important before agreeing to the purchase details.

6. Get things ready for day of purchase. Since many home buyers finance homes, lending institutions will require that different things be done to ensure they are not lending on a house that might not be livable or have the ability to be resold. That is why appraisals and inspections are requested by the banks during the process of purchasing a house. In addition, banks want to protect the investment made by both parties, so they will ask for home insurance to be secured and the title from the seller to be clear.

7. Close. At last! One of the final steps to buying a home is here and the day that everyone has been waiting for. Both sides will meet at a title or attorney's office to make sure financing is exchanged and the title to the property is provided to the new buyer. Financing details sometimes vary between lenders, but they will be able to guide you with final closing statements, additional money you might owe, and details of how the transaction is being processed.

8. Move. Although this is one of the steps to buying a home that is outside of the actual buying process, I thought it was important to include because it is still part of the new home experience. Whether you are moving things yourself or using a moving company, there are many things to be considered for your next move and that, done ahead of time, will prevent many headaches and reduce the anxiety that goes with moving.

more tips visit:http://bestsolutioninvestment.com/