Fletcher Realty

$8,000 Tax Credit For Home Buyers

2009-02-24T20:40:00.010-05:00

The $8,000 tax credit for first-time home buyers should entice some first-time home buyers to “jump-in” and buy a home, but it may prove to do little in increasing overall demand as first-time home buyers represent a small percentage of the entire market. Only time will tell if the tax credit is effective.

Available only to first-time home buyers The tax credit is not a loan and does not require repayment.
If the home is sold within 3-years, the $8,000 tax credit must be re-paid.
The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check.
Home purchase must be for a primary residence.
The credit is available on home purchases between January 1, 2009 and December 1, 2009.
If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit.
The credit is not eligible if the seller is a relative of the buyer.

First-Time Homebuyer Tax Credit: Frequently Asked Questions

1. What’s this new homebuyer tax incentive for 2009? The $7,500 repayable credit introduced in 2008 is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10 percent of the cost.

2. Who is eligible? Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. Is there an income restriction? Yes. The income restriction is based on the tax filing status the purchaser claims when filinghis/her income tax return. Individuals filing Form 1040 as single (or head of household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

4. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit? Not always. The credit phases out between $75,000-$95,000 for singles and $150,000-$170,000 for those married and filing jointly. The closer a buyer comes to the maximumphase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).

5. Are there restrictions on the location of the property?Yes. The home must be located in the United States. Property located outside the U.S. is noteligible for the credit.

6. Are there restrictions related to the financing for the mortgage on the property? In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008.

7. How do I apply for the credit?There is no pre-purchase authorization, application or similar approval process. All eligiblepurchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

8. So I can’t use the credit amount as part of my downpayment? No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would,in effect, bring the IRS into the purchase and settlement phase of the transaction.

9. What if I purchase later this year but can’t get to settlement before Dec. 1? The credit is available for purchases before Dec. 1, 2009. A home is considered as“purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before Dec. 1, 2009, for purchases to be eligible for the credit.

10. I know there is no repayment requirement for the $8,000 credit. Will I ever have to repay any of the credit back to the government? One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. Note that this same 3-year recapture rule applies, as well, to the $7,500 credit available for 2008. This provision is designed as an anti-flipping rule.

11. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years? The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion.

Click on the below link for more details.

http://www.federalhousingtaxcredit.com/2009/home2.html

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Isakson amendment gives $15K tax credit to homebuyers

2009-02-08T14:49:00.004-05:00

The U.S. Senate on Wednesday unanimously approved an amendment to the economic stimulus bill by U.S. Senator Johnny Isakson, R-Ga., that gives a $15,000 tax credit to anyone who buys a home in the next year.

Isakson’s amendment would provide a direct tax credit to any homebuyer who buys any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.
“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.”

In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction. Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes.

Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson said he believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.
Isakson has not made a decision about his vote on the overall economic stimulus legislation.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

N.C. Draws People Despite The Economy

2009-01-10T08:58:00.002-05:00

North Carolina was one of the nation's fastest growing states from July 2007 to July 2008. Ranked 4th in U.S. Census report. It remains the nation's 10th largest state. With a population of 9,222,414 which represents a 2.03 percent growth (Source US Census Bureau).

North Carolina's population rose 2 percent during the past year, making it the nation's fourth fastest growing state – and the most rapidly growing of any state east of Texas, a new report shows.

The state gained almost 181,000 residents from July 2007 to July 2008, according to the report released Monday by the U.S. Census Bureau. With a 2008 population of 9.2 million, North Carolina remains the nation's 10th largest state.

While the new figures don't reflect any changes during the past five months, when the economy registered its sharpest declines, they do show the state's growth rate is slowing. From 2006 to 2007, the state's population increased 2.17 percent.

But only Utah, Arizona and Texas grew at a faster rate, the reports shows.

South Carolina was the nation's 10th fastest growing state. It now has about 4.5 million residents, an increase of 1.7 percent over the previous year.

North Carolina passed New Jersey in population two years ago. Today, it has about a half-million fewer residents than Georgia, the next largest state.

Migration is driving North Carolina's growth, with many coming here for the jobs, climate and quality of life, experts say.

“There's been a slowdown in job creation, but we are still creating jobs,” says Tony Crumbley, vice president of research for the Charlotte Chamber. “…The quality of life in mid-sized cities in the South is where people want to be.”

The three N.C. counties that gained the most residents from 2000 to 2007 were, respectively, Wake, Mecklenburg and Union, according to figures from the N.C. Office of State Budget and Management.

The Census report also shows:

The nation's fastest growth occurred in the Rocky Mountains, home to six of the 10 fastest-growing states.

While the West was the fastest-growing region, the South added more people.
Northeastern states on the whole have gained population at an increasing rate since 2005, a change from the declining growth from 2000 to 2005.

Only two states – Michigan and Rhode Island – lost population from 2007 to 2008.

By Ames Alexander
Staff Writer
Charlotte News & Observer
Posted: Tuesday, Dec. 23, 2008

Staff Writer Ted Mellnik and The (Raleigh) News & Observer contributed.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com

Fannie Mae Gives Servicers More Flexibility to Help Borrowers Avoid Foreclosure

2008-12-29T22:20:00.004-05:00

On December 8, 2008, Fannie Mae announced it was giving mortgages Servicers more flexibility and more loss mitigation options to minimize foreclosures. The changes will allow Servicers to act earlier to avoid potential delinquencies. The changes affect mortgages in mortgage backed securities (MBSs) and mortgages held by Fannie Mae in portfolio.

The changes "build on and complement" the Streamlined Loan Modification Program (SLMP) that takes effect on December 15, 2008, and is described elsewhere in this week's Washington Report. Highlights of the changes include:

Authority for Servicers to apply loss mitigation tools for borrowers facing reasonably foreseeable, imminent default, so they don't have to wait until they are late making payments.
A new Early Workout program that allows Servicers to pre-negotiate a loan modification that takes effect and becomes permanent after the borrower successfully completes a trial period.
Clarification that a loan can remain in a pool even if it is 24 months delinquent, if there is ongoing activity to address the problem.
Elimination of the requirement that a loan must proceed to foreclosure after a specified period of delinquency.

Fannie Mae has also announced a new Single Family Master Trust Agreement that will allow Servicers, for new MBSs, to remove a loan that is 30 days delinquent from the MBS to modify the loan.

Freddie Mac guidelines also permit Servicers to address problems faced by borrowers who are at risk of imminent default. It is not known whether Freddie is considering enhancing this policy to complement the SLMP.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

USDA Homes Viable Alternative

2008-11-19T21:56:00.009-05:00

USDA offers 100% financing where the borrower can finance closing costs and prepaids if supported by appraised value making it easy for borrowers with limited assets. Two important factors are property and borrower income eligibility. These can be determined at http://eligibility.sc.egov.usda.gov/. The Raleigh USDA office is 873-2051.

USDA Features:

Can roll the 2% tax-deductible, non-refundable funding fee into the loan amount making it a 102LTV program! Take the loan amount and divide by .98 for the total loan amount.
If score is 620 or greater, no need to verify rent history; no derogatory credit explanations but we may require collections to be paid.
An FHA appraisal is not required but the appraiser can certify “minimum property standards” is met and a Home Inspection by a licensed inspector isn’t required.
Collection accounts aged <12>12 months have to be paid is u/w discretion.
DTI’s are 29/41 or 31/43 on homes built 4/2002 or after.
Ratio waivers can be requested with compensating factors.
Seller concessions limited to 6%.
Lend up to the appraised value which the borrower can add in closing costs, prepaids, and repairs. Escrow holdbacks are allowed. See Broker Guide for details.
All bankruptcies, foreclosures that resulted in a loss of security, and judgments must be seasoned 36 months from discharge date! 2 years for Ch 13. No exceptions.
Primary occupancy only! Only refis for USDA to USDA only. 30 year fixed only.
Water test is always needed with private wells: bacteria test only is required.
No limits on gift of equity.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Golden State Foods New Facility – Garner

2008-11-11T08:39:00.012-05:00

Fletcher Realty is one of the companies that will help some of you move from either Suffolk, VA or Greensboro, NC.

Below are some photos of the construction site for your new Golden State Foods plant in Garner. I will be updating these each week to show you the progress. Use the link to Fletcher Realty at the bottom of this post to discover who we are and do a search for homes in the Raleigh area.

Let others in your company know about this post so they can view the progress too. I look forward to making your move to Garner fun and painless.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Home Ownership "V" Stock Market

2008-10-16T19:32:00.007-04:00

Here are five reasons why you get more for your money with a house than the stock market:

1. Leverage. With stocks, you put in all your money for a little piece of a company. With a house, you put in a little money to get the entire house.

2. Tax benefits. Uncle Sam knows that owning a home is a pain in the neck; that's why you get tax incentives. These are basically government bribes to get you to buy. Think about it, with what other investment can you put in 5 percent of the cost of the asset, reap all the appreciation, and pay no capital gains? That's right: live in your home for at least two years, and you don’t have to pay capital gains tax on up to $250,000 in appreciation if you’re single and a combined $500,000 if you’re a married couple.And that's not all — consider the benefits of fixed-rate mortgages, property tax write-offs, interest rate deductions, and depreciation. Is this a great country or what?

3. Control. When you buy stocks, you're paying some CEO 500 times the average worker's salary for company performance that most other workers would lose their job over. With a home, you have control — what you buy, how much you pay, and where you live. You can improve the value with repairs and updates. Try comparing that to getting heard at the next shareholders' meeting!

4. Lifestyle. Do you want to look at a concrete jungle or your children playing in your own back yard? With a home, you're purchasing a vantage point for yourself and your family. The neighborhood you want to be in, and the size and style of a home that fits your needs.

5. Value. Unlike some stocks, your house will seldom become worthless. Barring a catastrophe, your home will retain a major portion of its value, even in the worst of times. So don't freak out about slight fluctuations in the value of your home in any given year. You'll make it up. Housing has lost value only one year out of the last 35. It's more normal to beat inflation by 1 percent to 2 percent.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Law Makes Housing Affordable for Veterans

2008-10-15T18:42:00.005-04:00

Veterans across America now have expanded homeownership opportunities due to the Veterans’ Benefits Improvement Act of 2008, which President George W. Bush signed into law last Friday. Three provisions in the legislation are critical to help veterans during the current housing turmoil.

The law will make it easier for veterans who have fallen victim to risky sub prime loans to refinance their loans into safer, more affordable loans backed by the U.S Department of Veterans Affairs.
The legislation also makes the VA loan limit increases permanent, which will help veterans living in high-cost areas.
The VA also can now offer adjustable-rate mortgages to veterans. That would make homeownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

10 Must-Know Real Estate Trends

2008-10-10T08:53:00.005-04:00

RISMEDIA, Oct. 1, 2008-Like Wall Street, the real estate industry is feeling the painful effects of loose lending practices and bad mortgage loans. Now, more than ever, prospective home buyers and sellers should be aware of what’s happening with the housing market-and where it’s headed-in order to make smart decisions. In addition to understanding what fueled the collapse of investment bank Lehman Brothers and the government’s bailout of mortgage giants Fannie Mae and Freddie Mac, get familiar with these top 10 trends in real estate, according to HGTV’s new award-winning real estate site, FrontDoor.com.

Homes in foreclosure reach record highs. While some markets have started to show improvement, the number of homes in foreclosure continues to rise to unprecedented levels. According to a report from the Mortgage Bankers Association, a record 1.2 million homes were in foreclosure in the second quarter of 2008. This number is expected to reach 2 million by the end of the year, analysts say.
Home prices continue to fall. But because real estate is local, the rate of decline varies on your market. And in some high-demand markets, prices are still climbing, though at a slower rate. According to the Case-Shiller Index — a survey of home prices in 20 major metropolitan areas — prices nationwide fell 15% in the second quarter of 2008 compared with last year. Despite the national numbers, some regions are starting to make a comeback. Some say the trend in falling home prices will mean lower divorce rates because a couple is less willing to sacrifice their equity.
Borrowers will have a harder time getting a mortgage. During the housing boom, mortgages were easy to come by — too easy to come by. Risky lending practices have come back to bite companies who profited from millions of bad loans, and many mortgage companies (including industry giants Countrywide, Fannie Mae and Freddie Mac) and investment bank Lehman Brothers have fallen apart. As a result, U.S. banks have tightened their lending standards, limiting non-traditional loans such as interest-only mortgages and getting rid of subprime mortgages.
Bad real estate agents will get weeded out. In the past, homes practically sold themselves, and enterprising people became part-time real estate agents. Nowadays, home sellers are looking for premium service and expertise from Realtors in exchange for the 6% commission. And savvy buyers want an agent who offers insight and knowledge not available on the Internet. So be selective — only the best Realtors will succeed in this market.
Mortgage rates are still at historic lows. After the government bailout of Fannie Mae and Freddie Mac, rates of 30-year fixed rate mortgages plunged from 6.35% to 5.93% in a week, the biggest weekly drop in more than 28 years. However, some analysts believe mortgage rates will rise if the government has to borrow money to finance Fannie Mae and Freddie Mac. But remember before the 1990s, interest rates were in the double digits.
Urban areas are making a comeback. The U.S. experienced a mass exodus to the ‘burbs after World War II, but homebuyers are now regaining interest in downtown areas. Urban core homes are often more expensive per square foot than their suburban counterparts, but many buyers are willing to pay a premium to avoid long commutes and urban sprawl.
Bigger is not always better. While the size of the average American family shrunk from 3.1 people in 1974 to 2.6 people in 2004, the size of the average American home increased from 1,695 square feet to 2,349 square feet. However, many home buyers looking to save money on utilities, taxes and maintenance are now foregoing McMansions and instead opting for smaller homes.
Buyers are going green. Eco-friendly attributes such as radiant floor heating systems, Energy Star rated appliances and on-demand water heating units are all the rage with homebuyers right now. For sellers, promoting your home’s green features will give you an edge in the competitive market.
Technology and social networking are changing how we buy and sell homes. Listings, home valuations and other information previously only available through real estate agents are now available on the Web. Because of this, agents have had to rethink their roles in the real estate world and adapt to the times. For buyers and sellers, more technology means alternatives to the traditional route of selling through an agent, such as home swapping and online auctions.
Flipping is out, buying and holding is in. Falling prices and a large inventory of unsold homes mean there are more potential bargains out there. Real estate investors are taking advantage of current conditions, knowing that a down market is the best time to get a good deal.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Court Mandates Credit File Cleanup

2008-10-07T20:20:00.003-04:00

A recent court decision requires the three major credit-reporting bureaus — Experian Group Ltd., Equifax Inc., and TransUnion LLC — to clean up the credit files of consumers who have filed for Chapter 7 bankruptcy.

These bureaus are still reporting old debts as active on consumers’ credit reports even though they were wiped clean in a bankruptcy filing.

The U.S. District Court for the Central District of California gave the bureaus until Oct. 1 to revamp their systems.

Consumers who have gone through Chapter 7 bankruptcy should request copies of their credit reports at a website like AnnualCreditReport.com and make sure that the old debuts have been removed.

The court-mandated changes come at a time when more consumers are filing for bankruptcy amid rising loan defaults and tighter credit standards. U.S. consumer bankruptcy filings jumped 29.2 percent to 96,413 in August, according to the American Bankruptcy Institute.

Source: The Wall Street Journal, Jane J. Kim (09/30/2008)

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Housing and Economic Recovery Act

2008-09-03T19:55:00.008-04:00

The Housing and Economic Recovery Act of 2008 awards a tax credit up to $7500 on 2008 tax returns for qualifying first time home buyers.

What is it? How does it work?

This is a tax CREDIT, and not a tax DEDUCTION. It is a true dollar for dollar reduction on taxes owed. It is not issued at the time of purchase - so you still need a down payment.
The credit can result in a true tax REFUND! If, for example, you were to get back zero on your 2008 taxes and you qualify for the full $7500 credit, you would then receive a tax refund for $7500.
The tax credit is essentially an interest-free loan. You will repay the credit to the government $500 per year over 15 years or when the house is sold.
If the profit you receive when selling your home is less than the remaining amount you owe, the discrepancy will be forgiven. For example, if $5000 was still owed and the sale of the home only generated $4000 profit, then the remaining $1000 shortfall would be forgiven and you would not have to repay the government.
If you take the credit in 2008, the first $500 payment would need to be made when you file your 2010 tax return.

Do You Qualify?

You must not have had ownership in a primary residence in the past three years.
You must purchase a home between April 9, 2008 and July 1, 2009.
Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $7500 credit. A lesser tax credit is still available if your income is above these amounts.

Brochure [PDF]
Homebuyer Tax Credit Chart [PDF]

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Cheapest Gas Prices By Zip Code

2008-05-30T06:48:00.004-04:00

If you follow the link below you will be able to find the cheapest price for gas in any zip code; and who wouldn't want to pay less for gas?

http://autos.msn.com/everyday/gasstations.aspx?zip&src=Netx

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Buyers Market - Why Rent?

2008-04-04T07:39:00.006-04:00

Are you still on the fence about buying a home? Home ownership is easier and less expensive than renting. Just click on this link and order your free "Why rent when you can buy?" brochure from the National Association of Realtors (NAR). Now is the time to act - the mortgage interest rates are favorable and there are a lot of properties to choose from. Call us 919-349-0711 or complete the form at the link - either way we will rush the information to you.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

Go Green Raise Your Credit Score

2008-04-01T21:49:00.013-04:00

To raise your credit score by up to 20 points - opt-out of all junk-mail solicitations from credit card companies and others. Click here and register to opt out.

It is the Green thing to do as you will be saving on gas used to deliver your mail, paper used to produce this junk mail, and of course you'll stop having to waste your time opening junk mail.

To find out more about how a Green home can save you money, take a look at our Go Green! mini-site.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

2008-03-31T14:41:00.009-04:00

Daily Real Estate News March 24, 2008

How to Help the Kids Buy First Home

Helping the kids buy a first home is a time-honored tradition that has become even more significant as home prices rise and incomes flatten.

Here are three ways parents can help their children:

Cash. For parents with the means, cash is clean and easy. An individual can give $12,000 a year to a recipient without having to pay a tax on the gift. Therefore, a couple could give an adult child and the child's spouse a total of $48,000 in one year. To keep things simple, the gift is best given well in advance of the mortgage application.

Cosigning or otherwise jointly investing in the property. This can work for parents of more limited means or those who want to be paid back. The biggest risk is that the offspring will be unable to meet their obligations and it will affect the parent’s credit rating.

Knowledge and hard work are worth gold. Parents who can’t afford to help financially may be able to provide experience and even some sweat equity to help the kids make a smart housing choice.

Source: Market Watch (03/21/08)

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/

IRS Releases Vacation Home Ruling

2008-03-25T08:24:00.003-04:00

The Internal Revenue Service recently issued a Revenue Procedure ruling that spells out how vacation properties can qualify for 1031 exchanges, which involve the exchange of investment properties.

The guidance aims to clear up the debate about whether vacation homes are investment or personal use properties. The ruling states that the property must be held by the taxpayer for 24 months. The holding period is broken into 12-month blocks, and during each the property must be rented at the fair market rate for no less than 14 days.

Additionally, the owner can use the property for 14 days or 10 percent of the days rented, whichever is greater, plus a "reasonable" number of days devoted to maintenance tasks. Because it is a safe harbor ruling, experts say failing to comply with all the rules does not mean the exchange will be denied or an audit will automatically occur.

However, they underscore the importance of keeping good records of the property's rental history and the dates the property was occupied by the owner for maintenance.

Source: Realty Times, Gary Gorman (03/06/08)

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com

Your First Home: Think it's a dream? Think again.

2008-02-04T06:49:00.003-05:00

Several weeks ago I attended a continuing education class presented by the North Carolina Housing Finance Agency. Wow! What a class, the best ever. I now know that it is not just a dream and if you think it is, think again. I can help you move out of that rented apartment or house and purchase a home. This is why I got into the real estate business, to help people purchase homes. Follow the link below and you can download a brochure that will give you all the details. For more information for first-time home buyers go to www.fletcher-realty.com and follow the First-Time Buyer link.

Your First Home [PDF]

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com

IRS Provides Tax Information on Home Foreclosure

2008-01-25T07:01:00.001-05:00

The Internal Revenue Service (“IRS”) has recently provided information to taxpayers about the possible tax consequences resulting from a home foreclosure. The general rule is that when a lender forgives a portion of a loan, the amount of debt cancelled constitutes taxable income for the taxpayer. The IRS website highlights the exceptions to this rule, so taxpayers can consider their options before their property is foreclosed by the lender. The IRS also recommends that the taxpayer may want to consult with a tax professional, as devising a structure to limit the taxes resulting from a foreclosure is a complicated process. Some of the exceptions are:

• debt is discharged in bankruptcy
• an insolvent taxpayer (defined as a taxpayer whose debts exceed his/her assets)may not have to recognize all of the discharged debt on his/her tax return
• cancellation of qualifying farm debts
• cancellation of a no recourse loan

If the taxpayer’s property is foreclosed, the taxpayer will receive a Form 1099-C from the lender. The IRS urges taxpayers to review the Form 1099-C to make sure it is accurate. If the taxpayer is unable to pay the taxes arising from a foreclosure, the IRS describes the process for making an “Offer-in-Compromise” to the IRS, which may relieve the taxpayer of a portion of the debt and/or create a payment plan for the taxes.

To read the Q & A on the IRS website, follow the link below. http://www.irs.gov/newsroom/article/0,,id=174034,00.html

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com

Remodeling Cost vs Value Report

2008-01-03T16:01:00.001-05:00

The 2007 Cost vs Value Report has recently been released. If your thinking of some home improvement or repairing a house for resale make sure you check out this report at http://www.costvsvalue.com/. The report will help you make the best choices in terms of your highest return on investment. Just as an example you will recoup the most on minor kitchen improvements, siding replacement and deck additions (This is a national average and can also be viewed regionally). So check it out and save http://www.costvsvalue.com/.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com

Exclusive Buyer Agency

2008-01-03T15:42:00.000-05:00

In the past real estate agents always represented the seller. Now a days we have different kinds of agency (Seller, Buyer, Dual). Fletcher Realty represents buyers exclusively never representing sellers or working in any form of dual agency. As the buyer you are entitled to have an agent that can give you undivided loyalty and put your interest above all others.

Remember the buyer brings all the money to the closing and it is that money that get portioned out by the seller. It seems to me the buyer should have the highest level of agency representation which is exclusive buyer agency and I mean exclusive with no form of dual agency.

David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com