Key West

Tomorrow we may find out if the House votes "Yes" to H. R. 1106.  H. R. 1106 will give bankruptcy judges the right to modify primary residence mortgages ("cram down").  Representatives and Senators refer to this as "cramdown" legislation.  This bill WON'T COST TAX PAYERS ANYTHING!  

Cramdowns allow a bankruptcy court to split a home loan into a secured loan that's equal to the current value of the home, and an unsecured loan that covers the rest of the outstanding debt. The borrower is required to pay the secured loan, while the unsecured loan is excused. Cramdowns are allowed under law in a corporate bankruptcy.

Senator Durbin has recently introduced S.61, the Helping Families Save Their Homes in Bankruptcy Act of 2009, to authorize bankruptcy courts to perform cramdowns for homeowners on their principal residence.

If we get more Ayes than Nayes this could take the bulk of short sales and foreclosures off the market.  Mortgages would be in effect re-sold to the borrower at today's market rate.  Can you imagine if this had happened 2 years ago?  Millions of people would still be in their homes.  We might not have needed the stimulus packages to be so large.  The lenders wouldn't have gotten as much TARP money.  Home prices would be stable in my area and that would have added hundreds of thousands of dollars of real value to homes. 

I contacted my congresswoman and I hope everyone out there has contacted their representative so that your voice is heard.  If you haven't contacted them yet CALL them and tell them to vote "Yes" to H.R. 1106 and tell them not to delete any of the provisions!  It's not too late to email and have a real impact. 

An easy way to contact your congress person is to join Americans For Fairness In Lending at http://www.affil.org/ then you can look for the issues that matter to you and in a single click send an email on the legislative issues that matter to you including H. R. 1106.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com.com
www.ShowcasePortfolioProperties.com

A new tax credit is official!  The credit is for up to 10 percent of the sale price of a home up to a maximum of $8,000.  It's a 1^st time home buyer tax credit and you can take the credit if you haven't owned a primary residence during the last 3 years.  Investment properties don't count against you. 

The credit applies to homes purchased between January 1, 2009 and December 31, 2009 so if you purchased a home before the credit became official you are in luck since it's retroactive.  The date that you move into the home is the effective date which means if you were bought the lot and built the house and moved in during 2008 you will qualify for the credit if you actually move into the house in 2009.

If you are married and file separately you can split the credit.  This is a true credit, not a deduction.  Even if you did not make enough money to get back $8,000 you will still get the $8,000.

When you couple the tax credit with the low interest rates it's bound to heat up home sales and get buyers to start writing offers.

The tax credit used to be $7,500 that was really an interest free loan that had to be paid back over 15 years.  The new credit is a true tax credit that does not have to be paid back as long as you own your home for 3 years or more.  If you sell the home before 3 years you need to repay the money.

To claim the credit you'll need to make less than $75,000 as a single person or less than $150,000 if you are married.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com.com
www.ShowcasePortfolioProperties.com
www.myspace.com/topkeysrealtor

This will affect Central Florida more than the Florida Keys, but If the Florida Department of Health has their way new property owners will have 18 months from the close of escrow to replace a septic system.  Buyers must get a building permit prior to closing.   DOH wants all septic tanks to be inspected for nitrogen levels when a home sells.  The inspection could trigger a mandatory replacement.   The cost for a new system is could be as much as $14,000. The DOH plan would allow an exemption for any community being attached to a public sewer by 2012. 

For more information, visit the DOH Web site at: http://www.myfloridaeh.com/

Maya M. Thomas
REALTOR®
(305) 522-1398
MyRealPro@gmai.com
www.ShowcasePortfolioProperties.com