The following Q&A is provided courtesy of the U.S. Department of the Treasury. The original document can be accessed online from the Treasury’s web site at this link - http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf

Borrowers Who Are at Risk of Foreclosure Are Asking:

1.    What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

2.    Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

3.    How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009. read more…

It is a temporary First Time Home Buyer Tax credit to provide a housing stimulus for first-time home purchases that occur between Jan. 1 and Dec. 1, 2009. The best thing about this new Tax Credit versus the previous one, other than the increase from $7500.00 to $8000.00, is that it does NOT have to be repaid. Combine this credit and also other tax benefits of owning a home today, a first time home buyer would actually make money buying a home vs. renting!!

I know this sounds too good to be true, so you ask what is the fine print and what does it mean to me?

So here it is in a nutshell:

• To qualify as a first time home buyer as defined in the program, the purchaser may not have owned a home in the three years prior to the purchase date of the home. Single family homes qualify for the program and the home must be your primary residence.
• To be eligible for the full tax credit, the home buyer’s adjusted gross income can not be more than $75,000 filing single / $150,000 joint. A home buyer with income level of that and up to $95,000 filing single / $170,000 joint is eligible for a reduced tax credit.
• The amount of the credit is the lesser of 10% of the purchase price or $8,000.00.
• No portion of the $8,000.00 will need to be repaid upon the sale of the home if the is owned for more than 3 years.
• The tax credit can be claimed on one’s individual or joint tax return between January 1, 2009 and December 1, 2009. It can be claimed on an amended 2008 tax return, or a 2009 tax return. You should consult a professional tax advisor for exact tax calculations and advice.

I hope this sheds some light on this First Time Home Buyer Tax Credit. After reading this I think it’s safe to say that in today’s real estate market if you are a first time home buyer and have the means necessary to buy a home you will not find a better time than the present to do so.

These are economic times where everyone is looking for ways to save money. If you are a current homeowner, or planning to be one, the link below will show you 12 ways to save money on the cost of home owner’s insurance. In many parts of the country, the cost of home owner’s insurance has skyrocketed for a variety of reasons. Some things we cannot change. However, as a smart consumer, you may want to look at these tips to be sure that you are not paying too much for your insurance. This can actually come into play with mortgage qualifying as well. Lenders look at a borrower’s income capacity to support their total housing expense. Part of that housing expense includes 1/12 of the annual home owner’s insurance premium. The more expensive the insurance is, the higher the total house payment is. This also means less of your total payment can go toward actually paying your mortgage. Shop carefully, & compare quotes from reputable insurance providers. This article is supplied courtesy of the Federal Citizens Information Center.

http://www.pueblo.gsa.gov/cic_text/housing/12ways/12ways.htm

CENTURY 21 Real Estate recently revealed that it is transitioning its television advertising to FrogPond TV online advertising.  “With 84 percent of consumers shopping for a home online, according to the National Association of Realtors, we’re confident that increased online advertising will benefit our brokers, agents and most importantly, the consumer,” says Tom Kunz, president and chief executive officer of Century 21 Real Estate.

It’s that time of year.   You’ve just taken down the holiday decorations and the house looks a little plain.  You begin to ponder that kitchen remodeling project that you have discussed with your significant other for the past couple years.  And then you wonder whether or not that would be the best use of your home investment dollars.

You’re not alone in your curiosity regarding home remodeling projects and the subsequent value that they may or may not add to the re-sale value of your home.  That’s why Remodeling magazine in cooperation with REALTOR® magazine produces an annual report describing the average cost recouped for 30 of the most popular home improvement projects in nine regions of the country.  This year’s study included 79 markets.

The East North Central Region which includes Michigan is not unlike the rest of the nation in that exterior projects dominate the list of highest payback improvement projects.  The number one project from the standpoint of recouping your investment dollars is siding replacement (with a 79.3% payback for fiber cement siding).  The next three projects in order are very close in their percentage of investment recouped, with minor kitchen remodels coming in at 69.1%, a wood deck seeing a 68.9% return, and new vinyl windows yielding 68.5%.

If you would like more information on how this study was conducted or city-by-city results please click through to http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008 for the detailed report.