First Time Home Buyer Grant Money Available in NJ

New Jersey Smart Start Program

1st Time Home Buyer Grant Program

Another reason now is the best possible time to be a home buyer in New Jersey.

The State of New Jersey has a grant program called HMFA's 1st Time Buyer Mortgage Program, aka Smart Start Grant Program. This program is designed to be used in conjunction with SMART GROWTH. This means the property must qualify as well as the buyer.

The first time home buyer grant program offers up to 4% of the purchase price in the form of a second loan to first time home buyers or people who haven't owned a home in the last (3) three years.

The loan is actually from grant money from the state of New Jersey at a 0% interest rate for the life of the loan and the best part is the loan is forgivable meaning the longer you stay in the house you don't have to pay it back.

See program guidelines for details, this article is only for meant to introduce you to the program. Program availability is not garanteed and terms must be verified with the source offering the grant, in other words "Don't Shoot the Messenger".

Both the home and the buyer must qualify for the New Jersey Smart Start program.

To see more information on the program and to find out if the community you are buying in is qualified, check out this link: http://sgl.state.nj.us/

For questions on how to obtain HMFA Smart Start down payment and closing cost assistance, please call them directly at 1-800-NJHOUSE and then call our office to help you find your dream home. At least you can work with us after providing you with the info that all these juicy programs are available. ;-)

Marivic GMAC Real Estate

1-866-745-GMAC (4622)

The beauty of this program is that the buyer does not have to repay the 0% interest 2nd loan for money toward down payment or closing cost until they sell the property. The best part is this is a forgiving loan meaning the longer you stay in the property, the less you need to repay, if you stay in the home for 5 years, you don’t need to pay back the 2nd loan at all.

Click here For all the Details about the NJ Smart Start Program

$8,000 First-Time Homebuyer Tax Credit H.R. 3221

UPDATE: The Tax Credit has been Ammended...

Unfortunately with all the So-Called Stimulus spending President Obama has been doing, both him and the reigning Democrats in congress shot down the Republican efforts to put a shot of stimulus directly into the Housing Market. The Republicans suggested changing this tax credit to one that does not have to be repaid and it should be raised to a more stimulating $15,000.

This suggestion was shot down but after the National Association of Realtors (NAR) launched their political action committee call to action from all Realtors to write their local politicians, the huge response led to the Dems approving a modified version of this stimulus suggestion ending in a lower $8,000 Tax Credit but also amending the provision to one that does not have to be repaid. I suppose it's better than nothing!

$7,500 First-Time Home Buyer Tax Credit

Credit Expires June 30, 2009

Bill Number H.R. 3221

Now is a Great Time to Buy a Home!

The tax credit is only temporary so now is not the time to dilly dally. With prices the lowest they've been in years, the interest rates are still low, the government offering all kinds of incentive to stimulate our economy why wouldn't you want to buy now?

Why now is the Best Time to Buy a Home?

• Low interest rates wont last forgever!
• First Time Home Buyer Tax Credit Expires July 1st 2009!
• Government investing Billions of Dollars to stimulate the economy!
• Programs like NJHMFA 1st Time Home Buyer Grant Program aka NJ Smart Start Grant

Yes now is a great time to be a home buyer, here is just one example of the benefits of home ownership and why it's a good thing.

Overview
The Housing and Economic Recovery Act of 2008 (H.R. 3221) signed into law by President Bush in July 2007 offers first-time homebuyers a tax credit equal to 10% of the cost of their home up to $7,500. This tax credit is available to first-time homebuyers who purchase a home in the United States as their principal residence on or after April 9, 2008, and before July 1, 2009.

To qualify as a first-time homebuyer, you cannot have owned an interest in a principal residence in the past three years from the date of the qualifying purchase.

To qualify for the full amount of the tax credit, you must not earn no more than $75,000 if filing as Single or Head of Household. If filing a joint return, the buyers may have a combined income of no more than $150,000. There is a phase out of the credit if reported income is more than $75,000.

The tax credit allows you to deduct the credit from your total tax liability for the year in which the credit is taken. Also, the tax credit is “refundable,” meaning that the taxpayer can receive a tax refund if the credit is greater than the estimated liability.

This tax credit must be repaid. However, the repayment period is 15 years unless the home is resold before the end of that period, and there is no interest on the amount of the credit that is received. Repayment of the credit begins two years after the credit is claimed and is repaid in increments of 6.67% per year of the credit amount.

Essentially, the tax credit is a 15-year interest free loan from the government. Money today is worth more than an equal amount of money in the future, making the tax credit a fantastic opportunity that any first-time homebuyer cannot afford to miss.

First-Time Home Buyer Tax Credit at a Glance

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and beforeJuly 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

Marivic GMAC Real Estate agents are here to help, call us with any questions you may have no matter where in the United States you may live. We have affiliate offices all over the globe. 1-866-745-GMAC (4622) and have agents on staff specializing in all areas of real estate from Residential to Commercial, New Construction to Vacation & Resort Properties, Pre-Foreclosure, Short Sales, Estate Sales, you name it we do it!

Home Buyer Resources
Buying a home can be complicated, but fortunately a lot of expert advice is available to help people navigate the experience. These online resources can help make the process smoother.

• Buying and Owning a Home Freddie Mac
• Buying a Home Department of Housing and Urban Development
• The Home Buying Process Federal Housing Administration
• FHA Loans Federal Housing Administration
• Homeownership Resources Fannie Mae
• Home Loan Learning Center Mortgage Bankers Association
• Move.com NAHB’s official new homes listing site
• Home Loan Guaranty Services Dept. of Veterans Affairs
• State and Local Home Buyer Assistance ProgramsHousing Publications from the Federal Citizen Information Center Most in PDF format
• Consumer Information from NAHB NAHB.org
• Mortgage information from the Fed Federal Reserve Board
• Home Financing Information from the FTC Federal Trade Commission

Additional Resources:
FAQ - Frequently Asked Questions about the Program
Official Government for the First-Time Home Buyer Tax Credit Program
Download the Bill H.R. 3221 in PDF format

Visit the Library of Congress and search for Bill Number H.R. 3221.

Further information can be found at http://www.federalhousingtaxcredit.com/ or http://www.irs.gov/. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

IMPORTANT: Short Sale, Refinancing, Loan Modification info

Mortgage Default Income Tax Relief
H.R. 3648

Important information:

Have you recently or are thinking about doing any of the following:

• Refinancing
• Short Sale or Pre-Foreclosure Sale
• Loan Modification
• Loan Restructuring
• Ask your Lender to Reduce or Forgive a Debt

Although disliked today by many people with short memories or who don’t even follow his politics and forgot or never even knew all the good that President Bush has done, it seem hating him is the Politically Correct or PC thing to do these days as so many follow suite.

This is really another great thing President Bush has done which is taken for granted these days but many find themselves so thankful for without giving the proper credit where it is due. Without H.R. 3648 real estate would really be dead in the water today to a degree which would be catastrophic in comparison to what is currently being experienced; so for all the leftists and Bush haters out there, I am certain this bill has touched you or someone you know in ways you cannot even begin to imagine.

Due to the act which this article will address many have been able to keep their homes or sell them and make settlement agreements with their lenders for an amount less than what was owed without having to pay an additional income tax for the amount which was forgiven by the lender.

Many people who are using the short sales method today to sell their homes, which has become so common only makes financial sense to do so and made possible to do so due to this act initiated by none other then George W. himself.

"When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes. So I'm working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on cancelled mortgage debt."

─ President George W. Bush, 9/1/07
VIDEO: President Bush Signs H.R. 3648

Thursday December 20th 2007 President Bush signed into law H.R. 3648: Mortgage Forgiveness Debt Relief Act of 2007 to amend the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes.

So what are we really talking about here?
Tax laws consider forgiven debt as income, which can leave those of you with foreclosed homes with some unexpected tax bills. Let's say I loan you a million dollars. Now I go, "Oh, wait. Never mind. You can keep it." The IRS considers that income. You would have to pay the taxes on your million dollars.

The tricky part comes in when I'm not just loaning you a million dollars. I'm loaning you money to buy an overpriced home that you can't afford and I can't sell for as much as you owe me once I take it back from you.

So how does this bill affect me?
Here is where the Mortgage Forgiveness Debt Relief Act of 2007 comes in to play.

Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.
Under the tax code, a lender who forgives a borrower's debt must provide a form 1099 to the IRS reporting the forgiveness of indebtedness as income to the borrower. The new legislation from Bush provides taxpayers who experience a home loan foreclosure or renegotiation resulting in forgiveness of indebtedness income with three year exclusion up to $2 million.

Bush said during the signing ceremony: "The law will increase the incentive for borrowers and lenders to work together to refinance loans -- and it will allow American families to secure lower mortgage payments without facing higher taxes."
Ahhh…. You may be scratching your head at this point so let’s simplify that a little further.
Under the Mortgage Debt Forgiveness Act of 2007, some homeowners granted forgiveness of mortgage debt won't have to pay taxes on that amount. But there are some restrictions:

1. There is a limit on the forgiven debt: up to $2 million or $1 million for a married person filing a separate return.
2. The tax break also has a time limit. It only applies to mortgage debt discharged by a lender in 2007, 2008 or 2009.
3. The loan also must have been taken out to buy or build a primary residence, not a second or vacation home. If debt is forgiven on those additional properties, the owner will owe cancellation of debt income as usual.

This law comes with a new tax form which must be filed if you find yourself in the unfortunate situation of having to do a short sale or if you are able to manage to work with your lender and by the grace of god manage to get them to forgive some of the debt and restructure you loan so that you can keep your house among other possible scenarios where you experience a debt forgiveness.
You will be required to file the new IRS tax Form 982.

If home mortgage borrowers are entitled to forgiveness for the income tax consequences of their default, who is to blame? Forgiveness of indebtedness income corresponds with the forgiving lender's bad debt deduction.

The House Ways and Means Committee in September, Rep. Kevin Brady, R-Texas, said that he wished the cost of paying for the relief was more tightly targeted to the lenders and real estate speculators who helped create the subprime lending crisis. Committee Chairman Charles B. Rangel's, D-N.Y. response explains it all for you. "It's so much easier to give the tax break than to pay for it."

Either way without the help of the Mortgage Forgiveness Debt Relief Act of 2007 we would be seeing a lot more of this going around. Read the story

Additional Sources:

• IRS on the Mortgage Forgiveness Debt Relief Act
• Mortgage Work Outs Now Tax-Free
• Hope Now The Home Owner Preservation Alliance 1.888.995.HOPE
• FACT SHEET - The Mortgage Forgiveness Debt Relief Act of 2007
• VIDEO: President Bush Signs H.R. 3648
• Official White House Press Release about H.R. 3648 Mortgage Forgiveness Debt Relief Act of 2007
• Wikipedia About George W. Bush
• George W. Bush Presidential Library
  

Some Banks No Longer Cooperating in Short Sale Process

Everyone knows about the 700 Billion dollar bailout for the banks in the U.S. but who was is it suppose to benefit?

The premise was that this would help free up the flow of money from lenders so that people can get mortgages again and purchase homes from the people in troublesome foreclosure situations in the process clearing up that problem.

So what's going on now? What happened? Business as usuall, Greed taking over and hurting the small guys while the banking industry still remains tight with its lending practices.

I've been noticing a frightening trend lately among the banks just recently after the bailout which is just starting to build momentum.

Since the banks are now hurting less with a lot more cash in their pockets due to the huge cash infusion to them, they are no longer as willing to work with home owners play ball to help the banks sell their houses in lieu of a foreclosure via the short sale method. Citi Bank seems to be one the trend setters in this arena leading the charge in holding home sellers accountable to still pay back the loans for a house they already lost or are losing, wish the banks would have been held accountable like. I guess that is a one way road where only the banks will benefit.

So where are all the safeguards Nancy Peloci the Speaker of the United States House of Representatives was bragging about which would help the home owners out there? Looks like Nancy Peloci and the democratic house are looking to spend 150 Billion more, will they be accoutable to whom they are giving these infrastructure, energy and other grant money to?

The banks are now figuring since home owners are hurting bad enough to sell their homes through a short sale and willing to walk away with nothing, the banks are taking it a step further and not allowing the process to continue at the last minute unless the home seller agrees to sign a personal loan guarantee that they will still pay back so much money from the loan even after they no longer have the house.!!!!

I'm working with a divorced couple who's credit is shot due to their differences and the house which neither of them live in any longer, yet they are holding up their end of the bargain with the banks and maintaining the property and doing what is necessary to allow an easy sale to a new buyer.

What's wrong with this picture?

Wasn't that 700 Billion dollars suppose to help the home owners who are hurting and allow banks assistance so they can be more willing to lend money to new home buyers?

The banks are taking advantage of the bailout and letting greed take over once again. Where are the safeguards?

In one instance I am speaking of most recently Citi Bank is the 2nd lien holder who is normally willing to walk away with one or two thousand dollars vs. the alternative of a foreclosure by the 1st lien holder and getting nothing.

I had an attorney who is a short sale specialist tell me this morning that this is rare but he has seen it before and it is becoming more of a trend as the banks become more stable. They are less willing to work with home owners sell their homes without demanding a personal loan guarantees and in the process making it no longer worth it for home sellers to cooperate. It takes a lot to close the sale on a home especially those in need of work in order to obtain a certificate of occupancy. I don't forsee home sellers will be as willing to do repairs or upkeep on a property they are losing and will still need to pay a mortgage back for in addition to coming up with money for a rental to move to.

Despite Bush's bill called the Mortgage Forgiveness Debt Relief Act of 2007 to prevent 1099'ing and taxing sellers on the forgiven debt as a result of a pre-foreclosure sale, home owners selling in these types of short-sales worked great until now because now the banks are unwilling to cooperate.

If this type of practice becomes more relavant I suspect we will be seeing a lot more foreclosures in the near future. This is not good news for home sellers facing this type of situation because the banks are pulling the last piece of hope from under sellers wishing to get a fresh start like the banks are, only without the government cash infusion.

A Glimps into a Realtors day

Are people crazy, ignorant or just plain stupid?

We have a cooperative for sale commonly referred to as a co-op. Today some lady called the office all bubbly with an extremely nasal sounding voice which would put Fran Drescher’s to shame. Anyway she goes on inquiring about a listing explaining every detail of the property listed in the magazine despite my trying to make her aware that I already know which property she is referring to, that didn’t work. She needed to finish her thought! Uuggg!!!

Some of these little personality traits people have can drive ya nutz!

Anyway this is a co-op listed for $75,000 in the New Jersey metro area of Edison, homes aren’t that cheap here, you can find some good prices in low to mid $200's but not really lower then that for an actual free standing structure "house". Moving on... I asked how can I help you, what would you like to know?

She replies by asking how big is the lot...

Ahhh… this is a co-op it’s not a house, it’s kind of like a condo except a different type of ownership, I replied. She replies not a house, ahhhh… then forget about it, I’m not interested and then hangs up!

My thoughts...
Are you freaking kidding me lady???????

Did you actually think for a second that you were going to get a house in Edison, NJ for $75,000 and then were ramping up to rip it apart being picky asking what the lot size is?

I gotta tell you, I’ve come across all types working in this industry and one thing is for sure, you will never see it all. I am constantly being surprised by the things people do or ask and by some of the strange things I have seen, some funny, some not so and some very stupid. One thing for sure is you can NEVER under estimate the stupidity of people!

This job is however always full of surprises.

Today was just probably a long day for me and the nasal voice coupled with the stupidity probably is just getting the best of me, prompting me to type this blog entry but figured, what the hell, I need to start posting something here! lol…

Has anyone else had any strange experiences you’d like to share, realtors, buyers, sellers all welcome to chime in.

BTW. I wrote this yesterday.

About Us a Peek Inside Marivic GMAC Real Estate

I'd like to start off by welcoming all the visitors to my brokerage's blog, my name is Victor Kaminski and I'm the Broker of Record and owner of Marivic GMAC Real Estate, Marivic Referral Associates and Marivic School of Business.

The Marivic Companies were started by Victor Kaminski and Maritess Kaminski as a partnership in hopes of offering a better option to traditional real estate brokerages for agents, a little variety, something different when it comes to a real estate brokerage and culture that grows within. Each of us come from very different backgrounds which work well together, one as a technology geek with marketing and human behavior observation skills, the other as an up beat get the job done no nonsense attitude with a background as an educator.


We offer our agents more, a chance to learn more, earn more, develop skills you may never thought you even had and will teach you how to be successful in real estate as a career minded individual. We encourage when others discourage, we will show your how to become a better agent though hard work and will equip you with the tools needed to do the job.


We strive to fill our office only with the hardest working agents in the biz, young or old, black, white, asian, latino it doesn't matter. We are an equal opportunity employer and seek agents from diverse backgrounds to teach, share and collaborate with each other like no other office in the industry.


We encourage agents who work together to play together by offering outings and occasions to play as well as work in different environments as an opportunity to break away from the norm. Break away from the stress working as a real estate agent can bring.


From street fairs with our Mascot Selly, to watching Broadway Shows and Hockey Games, Playing Paintball together as a team, the kind of things that really make a team that works harder and plays harder then any other brokerage. Does this sound interesting to you?




We'll get into more of the details in other articles at a later time. I wouldn't want to overload you by regurgitated too many of my ideas all at once, besides the competition is listening. Shhhh......


Does this sound like a better work environment to you? We offer the tools to work smarter not just harder and offer the most training options. Our training topics are never fluff, always the best possible usable topics are covered. With all kinds of training available from from self paced videos by professional trainers to formal classroom and webex type training classes and round table brain storming and role play sessions, we have it all.

We recognize talent and encourage it to grow in you and with us. We offer opportunity, showing how hard work and effort can and will pay off. If you want to earn more, learn more, be presented with more opportunities then any other office offers and have the desire to truly look out for your client’s best interest, look no further than Marivic GMAC Real Estate and come grow with us.

Okay... Alright already....Enough already?


This blog will be filled with everything from content from our agency listings to articles I hope you will enjoy and find insightful covering topics like my quarks and takes on the real estate industry, rants and raves, best of and worst of and factors which effect it, external as well as from within.

Many folks find me to be a love him, hate him type of character with a few on neutral ground, its all in good fun and although sarcastic always with good intentions, this is all part of what makes up my unique personality.

I consider myself a pull no punches kind of guy, believe in honesty even if it hurts and that integrity, honor, dignity, ethics and morals are good things to have and are all traits which build character, Everyone should have some!

Most of the opinions found in this blog are strictly that, opinions of Victor Kaminski and may not reflect the opinions of everyone in my agency or industry. Although my views and outlook will be given, remember much of it is only my opinion even though facts are many times quoted or used, always do your own due diligence and check with your attorney and accountants for all legal and financial matters and how they can affect you. Nothing herein should constitute legal or financial advice.


Through my contributions and consumer as well as other professionals feedback in other blogs on the web, I have found how personalities and perspectives on the real estate market topic, trends and opinions differ vastly and at times it can be amusing while other times irritating, either way it is good to hear other people's opinions and views.

All this makes up the great democracy we live in here in the United States but keep in mind, this is MY BLOG and not a democracy so get with the program!

Please enjoy and leave with a little more knowledge, perspective or a few laughs, we'll try and keep the tears to a minimum.

It's a good thing to stay sharp and on your toes in this industry and this is just my stress reliever and perspective enhancer. Although this blog entry is geared more toward the professionals in the industry or wanting to break into it, I'd like to hear the opinions and input from you, the consumer as well in this blog, trust me when I say you'll always get mine!

Once again enjoy and please don't ever be offended, take it all in with a grain of salt and remember its all in good fun.