IR-2009-27, March 18, 2009

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.

The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.

“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”

First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

The filing options to consider are:

• File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15.  This step would be faster than waiting until next year to claim it on the 2009 tax return.  Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later.  Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.

How does the Code of Ethics affect everyday real estate practices?

If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:

1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.
For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.

2. Put your interests ahead of his or her own, at all times.
A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.

3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.
If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.

4. Be truthful in all communications with the public.
When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.

Washington, March 18, 2009

The following is a statement by National Association of Realtors® President Charles McMillan:

“The National Association of Realtors® applauds the Federal Reserve announcement today that it would purchase an additional $750 billion in Fannie Mae and Freddie Mac mortgage-backed securities and up to $300 billion in longer term Treasury securities. This is great news for American home buyers and homeowners because mortgage interest rates will continue to remain at historic lows.

“NAR has been advocating since last fall that the Fed be more active in buying mortgage-backed securities. We are excited that the Fed acted on this provision of the stimulus plan that we offered to the government in November.

“Greater numbers of home buyers will be able to purchase a home, and homeowners facing challenges will be able to refinance into better terms. We already are experiencing a great improvement in housing affordability due to historically low interest rates, and the Fed’s move will push affordability conditions to the best levels in 40 years. In addition, continued low rates will lessen foreclosure pressure and help stabilize home prices sooner, as more American buy homes and draw down inventory.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

The recovery rebate credit is a one-time benefit for people who didn’t receive the full economic stimulus payment last year and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

Generally, a credit adds to the amount of your tax refund or lowers the amount of taxes owed. Therefore, the amount you receive for the recovery rebate credit will be included as part of your refund, as shown on your tax return.

You May Be Eligible

People who fall into the categories described below may be eligible for the recovery rebate credit this year:

*
Individuals who did not receive an economic stimulus payment.

* Those who received less than the maximum economic stimulus payment in 2008 — $600 per taxpayer; $1,200 if married filing jointly — because their qualifying or gross income was either too high or too low.

* Families who gained an additional qualifying child in 2008.

* Individuals who could be claimed as a dependent on someone else’s tax return in 2007, but who cannot be claimed as a dependent on another return in 2008.

* Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008.

How to Get the Recovery Rebate Credit

You need to claim the recovery rebate credit on Form 1040, 1040A or 1040EZ. The instructions for these forms will show you which lines to use. Unlike the economic stimulus payment, the recovery rebate credit will be included in your tax refund for 2008 and will not be issued as a separate payment.
The IRS Will Figure the Credit for You in Most Cases

You can let the IRS figure the credit when you file your 2008 Form 1040, 1040A or 1040EZ. If you’re filing on paper, simply follow the line-by-line instructions to choose this option. If you’re filing electronically, the software will figure the credit for you.

Or You Can Figure It Yourself

Likewise, you can figure and claim the recovery rebate credit on your 2008 Form 1040, 1040A or 1040EZ. Two interactive online tools will be available to help you with the calculation, the Recovery Rebate Credit Calculator and How Much Was My 2008 Stimulus Payment?

The Recovery Rebate Credit Calculator will help you figure the amount you should claim on your 2008 tax return. The worksheet in the Form 1040 instruction booklet can also help you figure your credit by hand. To use the Recovery Rebate Credit Calculator or complete the worksheet, you’ll need the amount of your 2008 economic stimulus payment, if any. This amount was provided on Notice 1378, Economic Stimulus Payment Notice, sent by the IRS to taxpayers who received a payment.

You need to know the amount of your 2008 economic stimulus payment to determine if you are eligible for the Recovery Rebate Credit. You will need the total amount of your stimulus payment to complete the Recovery Rebate Credit worksheet that is in the Form 1040, 1040A and 1040EZ instruction booklets. Even if your payment was reduced to satisfy other debts, as would be stated on your Notice 1378, you still need to include the total. If you received more than one payment — and more than one Notice 1378 — enter the total of all payments you received.

If you don’t have Notice 1378, you can use How Much Was My 2008 Stimulus Payment? to look up the amount you received.

For more information visit http://www.irs.gov/newsroom/article/0,,id=177937,00.html

What is the fundamental issue?
Until the recent round of abusive lending and housing market turmoil, the most effective remedy available to homeowners facing foreclosure to stay the foreclosure was to file for bankruptcy under Chapter 13 of the Bankruptcy Code. Today, however, an increasingly significant percentage of borrowers filing under Chapter 13 for bankruptcy are losing their homes to foreclosure because they can’t keep up with the financial demands of problematic mortgages.

In order to assist those saddled with abusive loans and minimize the turmoil created for families, neighborhoods, communities and housing markets by abusive lending practices, bankruptcy reform measures are being discussed to amend the bankruptcy code to allow mortgages on primary residences to bifurcated into a secured and unsecured and mortgage interest rates and terms to be modified by bankruptcy judges.

I’m a Realtor®. What does this mean to my business?
Bankruptcy reform could impact REALTORS® in a number of ways. Proposed reforms would provide homeowners and REALTORS® with additional leverage to negotiate short sales with mortgage lenders. In addition, the proposed changes could give REALTORS® attempting to help homeowners keep their houses another tool to negotiate a loan modification and avoid foreclosure.

Conversely, the housing market would be impacted by higher interest rates and potentially less liquidity in the secondary mortgage market, making it tougher and more expensive for buyers to secure a mortgage if lender confidence is shaken by the potential for a future involuntary loan restructuring (e.g. rate reduction, cramdown, term extension, etc.) in the course of a borrowers bankruptcy proceeding.

NAR Policy:
While NAR does have policy from the early 1990’s that opposes cram-downs, NAR currently has no policy applicable to the current proposed reform measures.

When this anti-cram-down policy was adopted, loans were predominantly fixed rate mortgages; 2/28s and exploding ARMs did not materialize until early 2004. The housing market and types of mortgages products having evolved dramatically since the last time this issue was considered by REALTORS®.

Legislative/Regulatory Status/Outlook:
On September 20, 2007, Representatives Brad Miller (D-NC) and Linda Sanchez (D-CA) introduced H.R. 3609, the “Emergency Home Ownership and Mortgage Equity Protection Act of 2007.” H.R. 3609 amends the Bankruptcy Code to remove the anti-modification provision for mortgages secured by principal residences and permits modified home loans to be repaid beyond the term of the Chapter 13 plan. Representative Steve Chabot (R-OH) has also introduced a bankruptcy reform measure, H.R. 3778, “Home Owner’s Mortgage and Equity Savings Act” or “HOMES Act,” which allows modifications on a debtor’s principal residence while placing limits on the types of loans. H.R. 3778 would also sunset after seven years.

On December 12, 2007, the House Judiciary Committee held its markup of H. R. 3609. Many amendments were offered, but none passed. Some issues that might be re-addressed as the bill moves towards full House consideration are putting a cap on the amount of principal allowed to be crammed down and making sure that the changes are not used as a mortgage tool and only as a last resort.

In the Senate, two different bankruptcy bills have been introduced. On October 3, 2007, Senator Durbin (D-IL) introduced S. 2136. S. 2136 is similar to H.R. 3609 and would amend the Bankruptcy Code and allow judges to modify loans. Also on October 3, 2007, Senator Specter (R-PA) introduced S. 2133, which amends the Bankruptcy Code and allow mortgages to be included in Chapter 13 filings, but restricts a judge’s ability to modify the principal of the mortgage. However, S. 2133 would permit a bankruptcy judge to stop or delay an interest rate increase, roll back interest rates, and eliminate early prepayment or prepayment penalties. No date has been set yet for the Senate Judiciary Committee to mark-up either bill.

The chance of any of these mortgage bankruptcy reform bills being enacted as introduced is very slim.

WASHINGTON, January 15, 2009

The drop in mortgage loan limits for conventional financing at the end of 2008 is hurting home sales and trade-up activity in higher price ranges across the country, according to the National Association of Realtors^®.

The latest existing-home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.

Outside of FHA, Fannie Mae and Freddie Mac, mortgages that do not have government backing are still experiencing a credit crunch. Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is not moving.

Lawrence Yun, NAR chief economist, said restoring higher mortgage loan limits is critical to this part of the market. “Buyers in higher price ranges are at a severe disadvantage because they have to pay higher interest rates,” he said. “Lower loan limits are having a pronounced impact on trade-up activity at the upper end of the market, which depends more on large downpayments to keep mortgage amounts below the maximums for conventional financing.”

While homes above $750,000 are considered luxurious in many areas, they are modestly sized homes in the midprice ranges of many high-cost markets. “However, the lower mortgage limits for conventional loans mean upper middle-class home buyers in much of the country, including many areas in the Midwest and South, also have to pay higher interest rates,” Yun said. “As a result, we are seeing a universal stalling of sales in higher price ranges across the country.”

To illustrate in dollar terms, if mortgage limits are permanently raised to $729,750, the maximum limit that expired at the end of December, the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said all consumers should have access to today’s historically low mortgage interest rates. “It’s only fair that all hard-working, tax-paying, successful people who want to purchase a home have equal access to low interest rates regardless of where they live or where they want to buy,” he said.

“Every segment of the housing market needs a turnaround to spark an overall housing recovery, which will help the economy to begin to recover,” McMillan said.

Copyright National Association of REALTORS®, Reprinted with permission.

When Is a Real Estate Agent a REALTOR®?
A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world’s largest professional association. The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics.

Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry.

Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice.

Working for America’s property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members.

Falling Behind on Your Mortgage Payments?

	Falling Behind on Your Mortgage Payments?
	Please ACT NOW!Improve Your Chances If you’re a homeowner who’s falling behind on your mortgage payments, please — ACT NOW! Call your lender or loan servicer today. The telephone number is listed on your mortgage bill and on the year-end tax statement you receive from your lender. If you take action now, you improve your chances of working out your situation with your mortgage lender or loan servicer. For example, depending on your situation, you may be able to incorporate missed or late payments into future payments, re-work the terms of your loan, or refinance into a different loan with payments you can more readily handle. The important thing is to take action immediately. Help is Available Many homeowners are struggling to keep up with their payments, especially those with adjustable-rate loans that reset to a higher rate and those whose job or family situation has changed. Free information and counseling are available to help you.Call the Homeownership Preservation Foundation at 1-888-995-HOPE to talk with an experienced counselor or visit the Foundation website at www.995hope.org. If Fannie Mae purchased your loan from your lender, but you are unable to reach your loan servicer, you can call us at 1-800-7FANNIE (1-800-732-6643). Protect your home, your credit and your financial future. If you’ve missed even one payment, or face the possibility of falling behind, please — ACT NOW. Fannie Mae’s Role Fannie Mae is committed to helping keep people in their homes. We don’t make mortgages directly but provide funding that supports mortgage lenders. We work with those lenders and with loan servicers to help borrowers modify or refinance their loans. In 2007, Fannie Mae and our lenders and servicers helped more than 100,000 homeowners modify or refinance their loans and stay in their homes. We also support the counseling efforts of HOPE NOW, NeighborWorks America and the Homeownership Preservation Foundation. Informational Resources : Fannie Mae website.

Ask a Realtor why now is a good time to buy a house.
mailto:RealtorSHunter@bellsouth.net

Saundra Hunter Sales Associate Recruiter
APOLLO is looking for a few good Realtors to join our successful team!
?Full service real estate brokerage firm serving Georgians since 1974
Three conveniently located offices for agents accessibility
Competitive commission splits
Escalated commission scale based on production
Company Training Program includes Apollo Training activities and outside training resources
Apollo Advertisements
» Company website
» Associates’ personal e-mail address
» Local and National Real Estate Magazines, Newspapers, other media sources
Board Memberships
Atlanta Board of Realtors
Dekalb Board of Realtors
Georgia Association of Realtors
National Association of Realtors
Empire Board of Realtists
National Association of Real Estate Brokers
Company Resources
» Marketing and Planning Programs designed to generate leads to increase revenue
» Company paid advertising of your listings
» Loop Net, Real Quest, other real estate software
» GAMLS and FMLS
» Property Management Division
» Work from home or from APOLLO offices
» On site Brokers available to answer questions
» Automated voicemail system (small fee)
» Free continuing education classes
» Free e-mail address on company web site
» Free start-up materials
» Free real estate yard signs
» No hidden fees
» And, so many other benefits
APOLLO is known as the REALTOR® of Choice for many Georgians. We are an organization that puts the clients’ goals first, we are persistent in our follow-up of all initiatives and we practice our profession with absolute honesty. Thirty plus years of success has been made possible by presenting to the public well-trained, caring and professional Realtists and REALTORS® working together as a team.

“WORKING FOR YOU WORKS FOR ME”
“I appreciate your business, your

trust and your referrals.”

SAUNDRA HUNTER
Apollo Associates Realty
“Service First Since 1974″
678-437-4203 (cell)
404-691-3209 (fax)
404-753-7373 (office)