Have you collected yours?  Thousands have taken advantage of the $8,000 tax credit available to first time homebuyers purchasing a home between January 1, 2009 and December 1, 2009.  Call your RPR Real Estate Services expert today at 313-237-1300 or email Info@RPRRealEstate.com.  Servicing the City of Detroit as well as Oakland, Macomb and Wayne Counties.

$8,000 First - Time Homebuyer Tax Credit FAQ

When do I need to purchase a home to qualify?

If you buy a home between January 1st 2009 and December 1st 2009 and close escrow during these dates, you will qualify for an $8,000 tax credit.  The property must be your primary residence and you will have to meet additional simple requirements.   Contact RPR Real Estate today Info@RPRRealEstate.com

How does the law define “first time homebuyer”?

The law defines “first time Homebuyer” as a buyer who has not owned a principal residence during the three year period prior to the purchase

What are the other requirements to qualify?

All U.S. citizens who file taxes are eligible to participate.  An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?

Taxpayers should use IRS Tax Form 5450 to claim the first time homebuyer tax credit.

Does the credit have to be repaid?

No.  Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

Can I use the tax credit toward a down payment or other closing costs?

Yes, an announcement made on May 29th allows the tax credit to be used toward purchase costs of a home, including down payment in some cases.  This can be done one of two ways.  First, buyers using and FHA approved lender can sell their anticipated tax credit to the lender and use the proceeds to immediately apply the tax credit to any down payment above the minimum down payment of 3.5% required with with FHA insured mortgages.  Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments via a tax credit advance loan that does not result in any cash back to the buyer.  In both cases, buyers can only access the credit after filint their tax returns with the IRS.

Contact Your RPR Real Estate Services representative at 313-237-1300 or email us at Info@RPRRealEstate.com today and own your first home using the $8,000 first time home buyer tax credit.

Times are hard but some investors are making a killing.

I am often asked, what is the foreclosure process in the State of Michigan? Although similarities exist, each state has it’s own foreclosure law. Michigan foreclosures are handled primarily out of court. The foreclosure process itself can take 3-14 months dependent upon the length of the redemption period. Foreclosures typically take about eight months.

In the foreclosure process the initial stage is the pre-foreclosure period. Court foreclosures are permitted under Michigan law; however, most mortgages contain a clause enabling a lender to sell a property out of court once a mortgagor defaults. While Michigan law does not require that a lender send out notice to the borrower before scheduling a foreclosure sale, the mortgage may require notification. The borrower’s right to stop the foreclosure by paying off the default is also dictated by the mortgage.

The second stage in the process is the notice of sale or auction. The foreclosure sale usually happens about two months after the foreclosure process is started. A notice of sale is posted in a local publication once a week for four weeks and the sale may not be less than 28 days from the date of the first publication The notice is also posted on he property during the publication period. The notice of sale must contain the lender and borrower names, mortgage information, the default amount, a legal description of the property, and the length of the redemption period.

The sheriff or trustee conducts the public auction between 9:00 am and 4:00 pm, usually at the county courthouse. The public is allowed to bid, and the property is sold to the winning bidder. The sale may be postponed by posting a notice of adjournment at the time and location of the sale. The person conducting the sale completes the necessary documents to transfer ownership to the winning bidder at the sale, and those documents must state the redemption expiration. The redemption period varies, but typically runs six months from the foreclosure sale date. During this time, the borrower can redeem the property by paying the winning bid amount and applicable costs.

Bill Nabers CRS, GRI

Associate Broker