According to the Government Accountability Office, Florida came in number 3 in the nation, with nearly $65,000 first time homebuyers that took advantage of one of the IRS tax credits under the Housing, Recovery and Assistance acts.

Although Florida ranked number three, California took the number one spot with over $814 million returned to first time homebuyers, reflecting nearly 117,000 claims. On a nationwide scale, nearly $23.5 billion were returned and 3.32 million submitted claims!  

There were three different credits that were offered to Americans; The Housing Act, which provided a maximum of $7,500 in refundable tax credit funds which must be repaid by the taxpayer, The Recovery Act, which provided a maximum of $8,000 in which the repayment is waived and the Assistance Act, which extended the credit to the spring of this year as well as providing 2nd time qualified homebuyers up to $6,500.

The tax credit had such an impact on the real estate market over the last year, that since the expiration of the tax credit over of the spring of this year, home sales have dropped significantly.


 

After a concerning decline in the pending home sales over the last few months, the National Association of Realtors (NAR) Pending Home Sales Index (PHSI) showed an incline of 5.2%!

Pending home sales reflect contracts that were signed during the 30 day period.  As the closing process can take a few months, the Pending Home Sales Index provides a look into the upcoming future of the real estate market. 

According to Lawrence Yun, Chief Economist for NAR, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy, the loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget.”

Across the nation the PHSI rose in the Northeast, Midwest, South and the West. 

A recent quote on CNN Sunday by Shaun Donovan, HUD Secretary, has caused plenty of turmoil in the real estate industry.  After stating that a restoration of the homebuyer tax credit is "not off the table" and that it is "too soon to say" if the tax credit would be revived, Donovan's remarks sparked controversy among real estate professionals.

HUD spokesperson tried to back pedal yesterday by claiming that "There are no discussions underway to revive the credit." However, just the talk of a revision could cause the home sales to stall even further.  The existing home sales in July showed a drastic decline, and if the figures for August are anything like July's a push for Government interference could certainly rise.  The Pending Home Sales Index will be released by the National Association of Realtors (NAR) on Thursday, September 2, 2010.

 

A mortgage foreclosure is a legal proceeding in which a lender terminates a homeowner’s right to the property in question. When a borrower defaults on a mortgage that is held by the lender, the lender has the right to repossess the property. Once the property has been repossessed by the lender, the bank can then sell the property and keep all of the proceeds to pay off the remaining amount left on the mortgage as well as any legal costs that incurred during the foreclosure process.

If the property does not sell after the foreclosure process, the borrower will remain liable for the amount due on the mortgage. The lender is required to sell the property at a price that is near the fair market value (FMV), however more often than not the lender sells the home at a discounted price in order to recover the amount lost on the mortgage. A foreclosure usually results in a loss for both the lender and the borrower, which is the reason that many homeowners will look at a short sale option before the mortgage ends up in foreclosure.

The first change to the flood plain designations in Collier County, Florida have been released, showing that nearly 1/3 of Golden Gate Estates is currently in a flood zone. This has left residents curious as to how their homes have fallen in a flood zone if their homes are well above sea level.

The new flood plain maps that were released by the Federal Emergency Management Agency (FEMA) have placed nearly 10,500 homeowners in need of flood insurance if they are unable to receive a certificate of elevation from a surveyor.  

For the next 90 days FEMA will begin to publish formal notices in the Naples Daily News that will begin the appeal process.  According to Bill Lorenz, County Land Development Services Director,  “This is the time that the public can file any scientific-based appeal of why they think the mapping is not correct.”  If you wish to search for which zone your home is located in, feel free to visit the Collier County website.

Maps are expected to be finalized by the beginning of 2011 and FEMA will issue a final determination letter, the flood insurance rules will not kick in until roughly six months after the distribution of the letter.