Monthly Archives: April 2009

Dayton Ohio Area Fundraiser

Mark the “to do” list to attend a fabulous Dayton, Ohio fundraiser!

3rd Annual Tab-a-pull-ooza
 
When? Saturday, May 2nd  8 AM – 1 PM
 
Where? National City Second Street Market, 600 East 2nd Street, Downtown Dayton

Pop can tab

Bring Your Pull-tab Collection to Dayton’s Ultimate Pull-tab Contest and raise money for Ronald McDonald House Charities Miami Valley Region to help support families of critically ill, hospitalized children. Families, schools, and businesses are encouraged to participate in this fun-filled event. Pull-tab collections will be weighed by First Street Recycling Co. Prizes will be awarded for the largest collections. In 2008, a total of 2938 pounds of pull-tabs were collected at the 2nd Annual Tab-a-pull-ooza generating $2,644.20 in recycling dollars. For more information, contact Faith Tuss at (937) 224-0047 or ftuss@rmhcdayton.org.

For more information on the Dayton, Ohio Area contact Christina today!

About the Author…
This Dayton Ohio Area Event was provided by Christina Asad Edwards, a Nationally recognized leader in her field. Christina can be reached via email at Christina.Asad@RealLiving.com or by cell phone or text message at 937-205-4741. Christina has helped thousands of people move in and out of the Dayton Ohio area and other Southwest Ohio towns. For Ohio real estate and homes see Dayton Ohio Real Estate.

Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at the MLS Property Finder Site.

Servicing the following towns and counties in Southwest OH: Beavercreek, Bellbrook, Centerville, Dayton, Greene, Fairborn, Kettering, Miamisburg, Montgomery, Oakwood, Springboro, Warren, and West Carrollton OH.

Click here to view Christina Asad Edwards’ Real Estate Profile

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Dedicated to providing a “moving” experience!

What Mortgage Forgiveness Means For You

President Bush signed a law that is meant to help homeowners who are facing foreclosure or who sell their homes in a short sale. Before this law, the Mortgage Forgiveness Debt Relief Act of 2007, if your bank or lender forgave a portion of your mortgage debt because the value of your home had decreased, the IRS treated the forgiveness as taxable income. That meant that if your mortgage lender forgave $15,000 in mortgage debt because your house was worth $15,000 less than your remaining mortgage balance, the IRS treated it as earned income. When you filed your taxes, you were required to add that amount to your annual income and pay taxes on it at your regular tax rate. Just when you most needed a break, you ended up owing taxes on $15,000 in phantom income.

Under the Mortgage Forgiveness Debt Relief Act, taxpayers can exclude up to $2 million of forgiven mortgage debt on their principal residence in 2007, 2008 or 2009. If you’re married filing separately, you can exclude up to $1 million in forgiven debt from your income.

What is mortgage forgiveness?
Mortgage forgiveness is a term that has become more familiar in the real estate market over the past couple of years. In essence, anytime that a lender accepts less than the full amount of the debt owed in full payment of a mortgage, the difference between the amount owed and the amount accepted is “forgiven”.

Let’s take a look at Sue and Jim. They took advantage of a great adjustable rate mortgage to buy a home for $350,000 four years ago. The payments were manageable until the adjustable rate did what adjustable rates do – and thanks to the changes in the housing market and the sub-prime lending market, they are now facing foreclosure. To make things even worse, the best offer that they can get on the home for which they paid $350,000 is $275,000. Although they still owe $330,000 on the mortgage, their lender agrees to accept the $275,000 as full payment of the remainder of the mortgage, forgiving $55,000 of the debt.

Under the Old Rules The IRS Gets Their Cut
When a bank or other mortgage lender forgives your loan or any part of it, they send you a 1099C in the amount of the debt forgiven. You are then required to count the amount on the 1099C as taxable income along with your earned income and wages. Sue and Jim from the paragraph above would have got a 1099C from their old lender. When they file their taxes for the year, that $55,000 would be added to their earned income, adding the insult of having to pay taxes on income they never saw. Instead of relief, they’d end up owing the IRS a hefty chunk of change at the next tax term.

The Mortgage Forgiveness Debt Relief Act Changes Everything
Well, not exactly everything. If you’re forced into a short sale, you’ll still get a 1009C from your lender, and you’ll still have to file that with your taxes. Now, however, you’re allowed to exclude the forgiven amount up to $2 million ($1 million if you’re married, filing separately) from your taxable income. In other words, while it’s still counted as income, you won’t have to pay taxes on that amount of your income.

Who Qualifies for the Mortgage Forgiveness Debt Relief Exclusion?
According to the IRS, you’ll qualify for this tax exclusion whether you mortgage debt is forgiven as part of a refinancing or if it’s forgiven in connection with a foreclosure. In order to qualify for the exclusion, the following conditions must apply:

  1. The debt forgiven must be on a mortgage for your principal residence. The principal residence is qualified based on the amount of time that you lived in it over the past five years.
  2. The mortgage forgiveness must be because of loss of value in your home or because of a forced short sale in connection with a mortgage foreclosure. A forgiveness that is given in return for services performed for the lender is not allowed.
  3. The debt must be forgiven between January 1, 2007 and January 1, 2010.
  4. The debt forgiveness must be on the mortgage used to buy your home.

How to Claim the Debt Relief Exclusion
In order to claim the debt relief exclusion, you’ll need to show the IRS how much of the debt has been forgiven. That will require some calculation on your part, because the IRS wants to see the fair market value of your home as well as the amount of your mortgage that was forgiven. Often, when the lender makes out the 1099C or 1099A, they may just put the value of the loan in the field that’s reserved fair market value of the home. In some cases, the 1099C or 1099A may not include the fair market value at all.

Like your math teacher, the IRS wants to see your work. When you submit your taxes, you’ll need to include documentation of the fair market value of the home as well as your calculations. If the fair market value of your home – the price that it was sold for – is not listed on the 1099C form, you may do best to hire an appraiser to document the fair market value.

The calculations can get complex if you’ve taken out home equity loans or a second mortgage on your home as well as the primary mortgage. In this case, special considerations may apply. For instance, the income exclusion only qualifies for “acquisition indebtedness”- money that’s spent to buy your home, build a new home or that you use to make substantial improvements to your home.

Suppose you bought a house 10 years ago and paid $80,000 for it with a 100% loan. The Florida land boom was very good to you, and five years later your home had increased in value to $200,000. You took advantage of lower interest rates to do a cash-out refinance for $150,000, paid off the remainder of the original mortgage and pocketed $70,000. When time comes to sell, though, you can only get $100,000 for the property and your lender agrees to a short sale because the home has decreased in value, forgiving $50,000 of the loan amount. Can you use the Mortgage Forgiveness Debt Relief Exclusion to avoid taxes on the $50,000?

That depends, says the IRS, on what you did with the cash-out part of the loan refinance. If you used the money from the refi to pay college tuition or your daughter’s wedding, then you’ll have to pay taxes on the forgiven amount. If, on the other hand, you used it to make major improvements to your home, then it qualifies for the exclusion – but you’d better be able to prove the expenditures. If you’re audited, you may need to provide your original warranty deed, or your HUD-1 form. You may need to show canceled checks, receipts and invoices to show the cost of improvements you made.

Filing For the Debt Forgiveness Exemption
The new law came at the end of the year, after the tax forms for this year had been printed, so you won’t find anywhere on the tax forms to make the calculations you’ll need to prove you qualify for the exemption. The IRS is suggesting that those who are facing a short sale or foreclosure this year use electronic tax preparation software. The private software companies have worked hard to update their own forms so that you can do all the necessary calculations within the software, then print out the results so that you can attach them to your completed tax return.

Source – Calum MacKenzie is Owner of Real Living Southern Homes a residential real estate brokerage located in Wesley Chapel, Florida and also serving the Tampa real estate and Land O’ Lakes FL real estate markets. http://activerain.com/blogsview/371563/What-the-Mortgage-Forgiveness-Debt-Relief-Act-Means-For-You

About the Author…
This Mortgage Forgiveness Information was provided by Christina Asad Edwards, a Nationally recognized leader in her field. Christina can be reached via email at Christina.Asad@RealLiving.com or by cell phone or text message at 937-205-4741. Christina has helped thousands of people move in and out of the Dayton Ohio area and other Southwest Ohio towns. For Ohio Real Estate and homes see Dayton Ohio Real Estate.

Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at the MLS Property Finder Site.

Servicing the following towns and counties in Southwest OH: Beavercreek, Bellbrook, Centerville, Dayton, Greene, Fairborn, Kettering, Miamisburg, Montgomery, Oakwood, Springboro, Warren, and West Carrollton OH.

Click here to view Christina Asad Edwards’ Real Estate Profile

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Dedicated to providing a “moving” experience!

New Blog Header

So I just re-customized my blog header, and I need some advice. What do you think, fellow Active Rainers? Too boring with the plain background? Professional? Unique? Any tips to make the customization better?

Thanks in advance for your help!

Christina

About the Author…
Christina Asad Edwards is a Nationally recognized leader in her field. Christina can be reached via email at Christina.Asad@RealLiving.com or by cell phone or text message at 937-205-4741. Christina has helped thousands of people move in and out of the Dayton Ohio area and other Southwest Ohio towns. For Ohio Real Estate and homes see Dayton Ohio Real Estate.

Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at the MLS Property Finder Site.

Servicing the following towns and counties in Southwest OH: Beavercreek, Bellbrook, Centerville, Dayton, Greene, Fairborn, Kettering, Miamisburg, Montgomery, Oakwood, Springboro, Warren, and West Carrollton OH.

Click here to view Christina Asad Edwards’ Real Estate Profile

Bookmark this Blog and Share It!  Bookmark and Share

Dedicated to providing a “moving” experience!

First Time Home Buyer Advice

First Time Home Buyer Question & Answer

I am sick of paying too much for subpar rentals, and my long term boyfriend and I have decided to try and buy a home. Unfortunately, we have no idea where to start. Should we go to the bank first, or a realtor? How does the first time home buyer loan situation look for two young adults… on with excellent credit and one with good credit? What percentage is an acceptable down payment? I have a billion questions… any advice?    Terra

Hi Terra!

Being a first time home buyer raises a billion questions – doesn’t it? There are several steps to first time home buying. It is best to contact a home loan consultant first for a 5 minute pre-approval – which can even be done over the phone! They will provide a ballpark figure of the total of the monthly mortgage payment, property taxes, and insurance for a particular area. It is a great way to determine the price range for house hunting. The home loan consultant can give you different options for various down payments, and explain the differences so you can select the right loan program for you. There are many questions to consider when speaking with potential buyer’s agents. The right Realtor will make the process easier for you, and help answer ALL your questions! Please feel free to contact me at anytime if I can help with anymore questions.

About the Author…
This First Time Home Buyer Advice was provided by Christina Asad Edwards, a Nationally recognized leader in her field. Christina can be reached via email at Christina.Asad@RealLiving.com or by cell phone or text message at 937-205-4741. Christina has helped thousands of people move in and out of the Dayton Ohio area and other Southwest Ohio towns. For Ohio Real Estate and homes see Dayton Ohio Real Estate.

Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at the MLS Property Finder Site.

Servicing the following towns and counties in Southwest OH: Beavercreek, Bellbrook, Centerville, Dayton, Greene, Fairborn, Kettering, Miamisburg, Montgomery, Oakwood, Springboro, Warren, and West Carrollton OH.

Click here to view Christina Asad Edwards’ Real Estate Profile

Bookmark this Blog and Share It!  Bookmark and Share

Dedicated to providing a “moving” experience!

Ohio March Market Report

More homes are selling! The March Market Report in Ohio for single family, residential homes in Montgomery, Greene, and Warren counties shows HUGE changes. In March 2009 versus February 2009, 207 more homes sold in March. The average days on market in March 2009 was 121, which is 36 days slower than the Real Living Realty average days on market (85).

FEBRUARY 2009

  • Homes Sold – 435
  • Average Bedrooms – 3
  • Average Square Footage – 1,586
  • Average Listing Price – $102,989 
  • Average Selling Price – $96,207  (93% sale price/listing price)
  • Average Days on Market – 126 
  • Homes Sold Price Range $1,500 (North Dayton) – $474,200 (Washington Twp – SW)

MARCH 2009

  • Homes Sold – 642
  • Average Bedrooms – 3
  • Average Square Footage – 1,678
  • Average Listing Price – $136,115 
  • Average Selling Price – $129,692  (95% sale price/listing price)
  • Average Days on Market – 121 (5 days sooner than February 2009)
  • Homes Sold Price Range $2,500 (Upper Dayton View) – $1,275,000 (Springboro-Clearcreek SD)

For more information on the market in the Dayton, Ohio area and buying or selling contact Christina today!

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
Christina.Asad@RealLiving.com
www.DaytonOhioHouse.com
mobile or text 937-205-4741 office 937-573-0082  
Real Living Realty – #1 in OHIO!
Realty, Mortgage, Title, Relocation

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Real Living Open House

What to Bring for a Home Loan Application

To make the loan process go quickly and smoothly, bring the following to the loan appointment (if applicable).

  • Residence addresses for the past two (2) years.
  • Past two years’ W-2 statements or 1099’s.
  • Computer generated paycheck stubs for last 30 days.
  • Names, addresses and phone numbers of Employers for past two (2) years.
  • Past two (2) month’s statements for all Checking, Savings, IRAs, 401Ks, Money Markets, Profit Sharing and evidence of Stocks and Bonds. Document all recent large deposits.
  • In income received for commissions, bonuses, partnership(s), corporation(s), or if self-employed, requires two (2) year’s Personal Federal Tax Returns with all Schedules along with a current P&L Statement and Business Balance Sheets and past two (2) years’ Partnership and/or Corporate Returns, if applicable.

Home Documents

  • Cancelled checks from rent or mortgage for the last 12 months, and name and address of any landlord(s) within the last 12 months.
  • Names, addresses, account numbers, monthly payments and balances on all open loans and revolving credit accounts.
  • Copy of Bankruptcy Petition listing all creditors and copy of Bankruptcy Discharge Papers (if applicable). Please provide letter of explanation as to why the Bankruptcy occurred.
  • Copy of Driver’s License and Social Security Card (VA Loans Only).
  • Certificate of Eligibility and DD214 Discharge Paper (VA Loans Only).
  • Application fee (check or money order).
  • Copy of divorce decree and/or separation agreement.
  • A “Friend of the Court” letter stating the amount of any alimony/child support payments and notification that the account is current.
  • 1040 tax forms (if you’re self-employed) for the past two years, 1120 Corporate Tax Returns (or Form 1065 for Partnerships) for the previous two years, year-to-date profit-and-loss statement and balance sheet signed by your accountant.
  • 1040 tax forms for the past two years (including schedules) if you own income properties or if your income is based on commission or bonuses.    Source: RealLiving.com

For more information on home buying, contact Christina today!

Christina Asad Edwards, REALTOR
Christina.Asad@RealLiving.com
www.DaytonOhioHouse.com
mobile or text 937-205-4741 office 937-573-0082  
Real Living Realty – #1 in OHIO!
Realty, Mortgage, Title, Relocation

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6 Reasons to Buy Now

Here are six reasons why now is the time to jump into the market.

  1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.
  2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.
  3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its value increases 10 percent, you’ve made $10,000.
  4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.
  5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same–while everything else, including rent, goes upward.
  6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color. 

Source: The Wall Street Journal

For more information on home buying, contact Christina today!

Christina Asad Edwards, REALTOR
Christina.Asad@RealLiving.com
www.DaytonOhioHouse.com
mobile or text 937-205-4741 office 937-573-0082  
Real Living Realty – #1 in OHIO!
Realty, Mortgage, Title, Relocation

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