ViewFromTheFootHills.com

Archive for November, 2009

4 Important Tips for Repairing Your Credit

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit. 

1. If you have positive accounts, keep them.  Do not close any accounts that have good payment histories as they will help balance the negative.  In addition, older, unused accounts with a zero balance may help improve your score.
2. If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
3. If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts.  With negative credit, opening new accounts may be difficult, so open a “secured” credit card.  With a “secured” credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount.  The new accounts will help you establish a positive credit history. 
4. WAIT.  While this may not seem like a plan packed with insider secrets, the fact of the matter is…time heals credit.  Remember, this is a marathon not a sprint.  If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan?  Your credit will be good enough to buy a home again.  Don’t let the setback of a short sale or foreclosure make you feel hopeless.  You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

Buying a home after a Short Sale or Foreclosure???

by Scott Cooper, Big Valley Mortgage

Many people believe they won’t be able to purchase a home for at least 7-10 years after a short sale or foreclosure, however, I am happy to inform you that is not the case. 

Although your credit will be affected, you will be surprised how quickly you can buy again.  The following are some commonly asked questions and answers you may find useful:

Q. How long after a short sale before I can buy another home?

A. New FHA guidelines state there is no minimum wait period after a short sale before you can buy another home if you do not have late payments on your mortgage and your credit history is acceptable.

Q. If I have late payments along with a short sale, how long before I can buy again?

A. The current guidelines require a two-year waiting period.

Q. How long after a foreclosure before I can buy again?

A. With an FHA loan, the minimum wait period is 3 years after a foreclosure.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

Don’t Miss the Mountain Mandarin Festival in Auburn CA!

The 16th Annual Mountain Mandarin Festival is Saturday and Sunday, November 21-22!

When: November 21st, 9am to 5pm and November 22nd, 9am to 4pm

Here’s what to expect! 

Map:

It’s Official! The First-Time Homebuyer Credit has been Extended.

On Thursday the Senate and the House both overwhelmingly approved the legislation to extend and enhance the Homebuyer Tax Credit. On Friday, President Obama signed it into law.

The down and dirty:

1. The First Time Homebuyer Credit of $8,000 will be applicable through contracts in place by April 30, 2010, and allows for 60 days beyond this date to close the transaction.
2. In addition, repeat buyers — those who have lived in their previous home for 5 of the last 8 years — will qualify for a credit of $6,500 for purchases between December 1, 2009 and April 30, 2010.
3. Couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the credit, an increase from $75,000 for individuals and $150,000 for couples.

I like this summary of the information from NAR: 

For more information, please contact me!

Gorgeous Maple among the Pines outside Auburn CA

This gorgeous maple stands out amidst acres of pine trees.

Chinese Pistache in all its fall glory – Auburn, CA

This huge Pistache tree is just off College Street in Auburn.

How do I file for the First Time Homebuyer Tax Credit?

If you are a First Time Homebuyer who qualifies for the First Time Homebuyer Tax Credit, here’s how to file and receive your credit.

You have two choices: you can file to amend your 2008 tax return, or wait and file in 2009.

How to amend your 2008 tax return:

1. Download Form 5405 ”First -Time Homebuyer Credit” from the IRS website. Use this link to determine the amount of your credit.
2. Then download Form 1040X  ”Amended U.S. Individual Income Tax Return” to amend your 2008 return.
3. Fill out the amended credit amount on Line 15 under Payments.
4. File Form 1040X along with Form 5405.
5. Any refund due will be sent to you.

Filing for your credit in 2009:

1. File Form 1040 as usual.
2. On Line 69, enter the amount of your credit calculated using Form 5405;
3. Be sure to attach Form 5405 to your return.
4. Your refund will be sent to you.

Be sure to consult your tax professional for further information.

Contact me for assistance in purchasing your first home.

First Time Homebuyer Tax Credit – Update

Senate votes today to extend the first time homebuyer credit through April 30th, 2010.

Once the Senate votes, the House is expected to follow suit and then off to Obama’s desk for signature.

Here are the details of the new and improved credit:

1. The First Time Homebuyer Credit of $8,000 will be applicable through contracts in place by April 30, 2010. This allows for 60 days to close the transaction past this date.
2. In addition, repeat buyers — those who have lived in their previous home for 5 of the last 8 years — will qualify for a credit of $6,500 for purchases between December 1, 2009 and April 30, 2010.
3. Couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extension, an increase from $75,000 for individuals and $150,000 for couples.

Act quickly:

“The American people should understand this — and the affected industries — this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.” See the entire article.

 

http://www.bloomberg.com/apps/news?pid=20603037&sid=ai5ZNuz56Q4g