Merry Christmas and Happy New Year!

Merry Christmas and Happy New Year!

I AM LOOKING FORWARD TO HELPING MORE FAMILIES FIND A HOME IN 2010!
THANK YOU FOR YOUR CONTINUED SUPPORT THIS PAST YEAR!

Home Buyer Tax Credit Q&A

First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased..

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

Best Time to purchase a Rental property....EVER!

RIGHT NOW is the perfect time to purchase a rental property.


Prices are low, Interest rates are even lower! Owner's are desperate to sell or have gone into short sale or foreclosure status.
Many of my investor clients simply rent out the home and are waiting until the market fully comes back to where they will make a profit. if you are in the position to purchase a rental property, NOW IS THE TIME!
Ask me for a list of homes that would be perfect for a rental property!!

HGTV's House Hunters is Coming to Atlanta!!

HGTV’s House Hunters is COMING TO ATLANTA!

Are You or Anyone You know wanting to purchase a home in the next couple of months and have a great story to tell?

If so, contact Me today and submit an application and we can have the whole world watch us go through the process of purchasing a Home on HGTV’s House Hunters!

This is a very exciting opportunity! I have been in direct contact with the casting producer and director for the show and I have all of the paperwork needed to move forward!
Call or email me for more information!

Katy Foltz - Realtor®

Certified REO/Foreclosure Specialist

Keller Williams Realty- Community Partners

Office 678.341.7968

Fax 678 341 7969

Mobile 678.860.2220

kfoltz@kw.com

Amazing 4 Bedroom Home in Cumming for a 3 bedroom price!

ONLY 48 Business Days Until Thanksgiving!

Did you know that there are only 48 Business days left until Thanksgiving?? In order to get the First Time Homebuyer Tax credit you must be closed by November 30th! It may seem far away but I promise that if you are wanting to take advantage of that....it is imperative to put an offer on a home, in order to close in time, in the next couple of weeks at the latest! ....especially if it is a short sale or foreclosure!

REALTOR vs. Real Estate Agent

There is a difference! Did you know that?

Both are licensed to sell real estate....BUT......A REALTOR is a member of the National Association of REALTORS and that means that REALTORS must follow the REALTOR Code of Ethics.

Here is What REALTORS follow that agents do not have to:


#1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.

#2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

#4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

#5) Shall not provide professional services in a transction where the agent has a present or contemplated interest without disclosing that interest.

#6) Shall not collect any commissions without the seller's knowledge nor accept fees from a third-party without the seller's express consent.

#7) Shall refuse fees from more than one party without all parties' informed consent.

#8) Shall not co-mingle client funds with their own.

#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

#12) Must engage in truth in advertising.

#13) Shall not practice law unless they are a lawyer.

#14) Shall cooperate if charges are brought against them and present all evidence requested.

#15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

#16) Shall not solicit another REALTOR'S client nor interfere in a contractual relationship.

#17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

I would love to be YOUR REALTOR of Choice!

Ways to avoid FORECLOSURE!

WAYS THAT HOMEOWNERS
CAN AVOID FORECLOSURE

REINSTATEMENT:
o THE OWNER CAN PAY BACK ALL MISSED PAYMENTS, LATE FEES AND LEGAL FEES THAT ARE DUE UP TO THE DAY THE LOAN IS REINSTATED.

REPAYMENT PLAN:
o THE LENDER WILL ALLOW THE OWNER TO REPAY THE AMOUNT MISSED OR ADD THE MISSED PAYMENTS ON TO THE END OF THE AMORTIZATION OF THE LOAN.

RENT THE PROPERTY:
o MANY OWNERS CHOOSE TO RENT OUT THEIR HOME IN ORDER TO “COVER” THE MORTGAGE EACH MONTH. THIS IS A GREAT OPTION!

SELL THE PROPERTY:
o IF THE OWNER HAS ENOUGH EQUITY IN THE HOME, THEY CAN SELL IT AND PREVENT THE FORECLOSURE.

REFINANCE:
o MANY OWNERS HAVE SUFFICIENT EQUITY IN THEIR HOMES AND DECENT CREDIT IN ORDER TO REFINANCE.

MORTGAGE MODIFICATION:
o THIS PROCESS WILL LOWER THE INTEREST RATE ON THE EXISTING LOAN TO LOWER THE PAYMENTS.

DEED-IN-LIEU OF FORECLOSURE:
o THE HOMEOWNER ESSENTIALLY GIVES THE DEED BACK TO THE BANK.

SHORT SALE:
o THIS IS WHEN THE HOMEOWNER OWES MORE THAN WHAT THE HOME IS CURRENTLY WORTH AND ONE OF THE OTHER OPTIONS DOES NOT WORK.

WHY YOU SHOULD STOP RENTING!

Reasons Why You Should Stop Renting
1. Rents continue to rise!
2. Having no economic security, not knowing how much your rent may go up in the next two to three years.
3. No tax benefits
4. No price appreciation
5. Nothing to show for your money spent
6. No freedom to do what you want with your space.

TimeTicking for $8,000 Tax Credit!

Time is ticking for the 1st time homebuyer tax credit!
A home must be PURCHASED on or before Dec 1st!!! Take advantage of this! PLUS the $1,800 tax credit for ANY GA Homebuyer!

Contact me today to see if you qualify!
3 Great Reasons to Buy Now!:
1) HISTORICALLY LOW Interest Rates
2) Low prices and TONS of homes on the market to choose from!
3) TAX CREDITS!!! Federal and State~ almost $10,000 worth!!

Atlanta is one of top cities to buy a home!

ATLANTA IS ONE OF THE TOP CITIES IN THE COUNTRY TO PURCHASE A HOME! It is actually number 13 according to FORBES magazine. Being out in the Atlanta market on a daily basis, I am truly seeing an upswing in the market. In the North Fulton and Forsyth county area of Atlanta, home sales are picking up. I run numbers every month targeting cities like Alpharetta, Cumming, Johns Creek and surrounding areas. I have been keeping track of the numbers such as recent solds, recent pending sales and different percentages. Since January, each area has had an increase in the number of pending sales and solds along with a slight decrease in the amount of inventory (homes on the market). Contact me today for a detailed report on the market in your area.

Location,Location,Location! 3 bed/3.5 bath in Alpharetta, Ga $309,900!

What Your Lender Will need From you to qualify for a Loan

Ten Things a Lender Needs from You
1. W-2 forms or business tax return forms if your self-employed for the last two or three years for every person signing the loan.
2. Copies of one or more months of pay stubs for every person signing the loan.
3. Copies of two to four months of bank or credit union statements for both checking and savings accounts.
4. Copies of personal tax forms for the last two to three years.
5. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account. .
6. Copies of your most recent 401(k) or other retirement account statement.
7. Documentation to verify additional income, such as child support, pension, etc.
8. Account numbers of all your credit cards and the amounts of any outstanding balances
9. Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.
10. Addresses where you lived for the last five to seven years.

Let's Go Shopping

On top of the $8,000 Tax Credit……….

Georgia Governor Sonny Perdue passed an additional tax credit for Georgia residents!!!!

Here is the deal:

House Bill 261 gives a credit of either $1,800 or 1.2 percent of the purchase price, whichever is less. (You can only claim one-third of the credit each year, beginning with your 2009 Georgia tax return.) The purpose of the bill is to create a stimulus for home sales, and give a boost to the Georgia real estate market.
Here is how the Georgia Homebuyer Tax Credit applies to home purchases:
• Applies to single-family homes and condos if they are your primary residence
• The property must have been for sale prior to May 11, 2009 and must still be for sale
• The property must be in default on or before March 1, 2009
• The property has already been foreclosed on and is held by the bank or mortgage company
Homes purchased between June 1 and November 30, 2009 that meet the criteria will be eligible for the tax credit.
The new Georgia Homebuyer tax credit makes it an amazing opportunity when combined with the Federal $8,000 Tax credit.
Let’s Go Shopping for that perfect home in this perfect home-buying market!!


Here is the exact bill :
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb261.htm

Real Estate in Cumming and Alpharetta, Ga.

Major Price Reduction on 360 Fairpointe Place in Suwanee, Ga!

Spectacular Townhome in Smyrna! -$156,000!!!!

Awsome 4 bed 2 1/2 bath home In Suwanee! $232,000!

Buyer's Market = Trade up your home market

I love this graphic from the Keller Williams "SHIFT" BOOK. It proves that if you have to sell now and need to move and buy another home, even if you lose money on the selling side, you will more than make it up on the other end!... Since we are in this "Buyer's" Market. What a great time to Buy! What are you waiting for???

The Rental Market Return

Lately, I have been fortunate enough to go on many different listing appointments and I finding that everyone is in the same position. They purchased their home for $10,000, $20,000 and even $50,000 more than what the home is worth now. But guess what, they need to move or have lost a job,etc. I am not in the business of listing homes. I am in the business of SELLING homes. I do not think it is fair to the owner of a home if I just stick a sign in their yard if I don't think it has a chance in selling. SO what a lot of my sellers are doing right now is putting the home on the market for sale and for rent. Most all of them really just need to cover their mortgage or even just get most of it covered by a tenant. A few years ago, the rental market was pretty slow, but I have seen a major increase in rental listings. Also,I work with a great property management company that can help my sellers keep their tenants in check and make sure they are taking care of the home once they are in it! What a great way to SHIFT with the market and see the opportunity within it.

The Real Estate Market is ever-changing!!

Spring Forward!

DON’T FORGET TO SPRING FORWARD THIS WEEKEND!

We lose an Hour of Sleep but at least it's getting warmer!

Downtown Alpharetta proposed "CITY CENTER"

Downtown Alpharetta, if you know anything about it, badly needs a "facelift". There have been many different ideas of what to do with the area. I attended a meeting to discuss the next proposal of what to do. It is called "City Center".

It would consist of 100,000 square feet of mixed use retail and office space, 50,000 square ft. City Hall, downtown park, and a central town sqaure.
The projected cost is:
Park and Greenspace- $3.4 million
Structured Parking- $9.1 Million
City Hall- $12 Million
Commercial Bldg- $19.5 Million
and Possible Library- %25 Million.

Maximum City Investment of $24.5 Million
Total Project Value $69 Million.

Citizen input is needed with three more meetings to be held. Please visit this article for dates.

Motivational Quote

The Life Builders Creed

Today is the most important day of my life.

Yesterday with its successes and victories,

struggles and failures is gone forever, the past is past.

Done. Finished.

I cannot relive it. I cannot go back and change it.

But I will learn from it and improve my today.

Today. This moment. NOW.

It is God’s gift to me and it is all I have.

Tomorrow with all its joys and sorrows, triumphs and troubles

Isn’t here yet.

Indeed, tomorrow may never come.

Therefore, I will not worry about tomorrow.

Today is what God has entrusted to me.

It is all that I have. I will do my best in it.

I will demonstrate the best of me in it.-

My character, giftedness, and abilities-

To my family and friends, clients and associates.

I will identify those things that are most important

to do today,

And those things I will do until they are done.
And when this day is done

I will look back with satisfaction at that
Which I have accomplished.

Then and only then, will I plan my tomorrow,
Looking to improve upon today.

Then I shall go to sleep in peace…content.

Steps to Buying a Home

1. Define your specific needs.

Deciding to buy is a great choice! Now you need to sit down and figure out what it is you need and want in a piece of property. To find the right place for you, letting your agent know those needs is key to finding the perfect home. Create a list of must-haves and negotiable items.

2. Get yourself pre-approved.

This is the only way you can truly know how much home you can afford. I can refer you to some lenders so that you can find which one is right for you. Getting pre-approved will help you be a more desirable candidate to a seller when it comes down to offers.

3. Looking at Homes

This is the fun part. Getting out there with your agent and looking at the market where you are interested in buying a home. Sometime it can get overwhelming. Let your agent do the initial searches for you and get all of your specific criteria for what you need and want in a home. Then you narrow those down and meet with your agent to look at the homes.

4. Make an Offer

When you have found the right house, the next step is to write up a contract. You and your agent will decide on a price to put into the offer. You will decide what to offer by looking the recent sales of homes similar to the one you are making an offer on. Your agent has that information. The contract is written up by your agent, with your input, that outlines what each party obligation’s are. If the seller changes anything in the agreement, it is not binding until you agree to the changes. This can go back and forth a few times.

5. Negotiations

This is the part where you go back and forth. Sometimes the seller just agrees, but usually there are some negotiating items. This is where your agent is really a crucial art of the process and they will help you negotiate with the seller. Many things that are negotiated on are price, repairs, closing date, closing costs, and even appliances. It always takes compromise from both parties

6. Seal the Deal

After some negotiation usually, you finally get a binding agreement in place. You have a certain amount of time to get an inspection done, get an appraisal for your financing, look into title insurance and a home warranty if not offered by the seller. These things are all needed to be done in a timely manner or they may affect the closing date.

7. The Closing

You have been through a lot of emotional ups and downs by this point. This is the best part of the process. You have just bought a home! This is where the ownership of the home you are purchasing is legally transferred to you. Closings usually happen at an attorney’s office where all of the legal papers will be gone over with you. You will be signing and initialing a lot. Your lender will have sent over a final closing statement for you no more than 24 hours prior. After all of that is complete, you will be handed the keys to your new home.

Referrals are at the Heart of my Success

REFERRALS ARE AT THE HEART OF MY SUCCESS. THE GREATEST COMPLIMENT I CAN RECEIVE, IS A REFERRAL TO YOUR FAMILY AND FRIENDS. HAVE A HAPPY VALENTINES DAY OR SAD (SINGLES AWARENESS DAY).

Local Market Stat and Chat

Great Information and numbers about the real estate market!!! Anyone is welcome. Contact me if you would like to attend.

BUY NOW OR WAIT???

Creative Ways to Buy a House

If your income and savings are making the purchase of a home a challenge then:

• Get help from your family. If you feel strange asking for help, when your birthday comes around...ask for a donation toward your downpayment. That way it won't feel as uncomfortable. Also, they could lend or even co-sign with you on your mortgage. Many times, lenders prefer a person to co-sign with you if you have little credit history.
• Get the seller of the home to provide financing. Many Sellers agree to this and you could pay them back as you would with a mortgage.
• Consider a lease with an option to buy. You could rent the home for a time, so that you could save for the downpayment. Also, many times the seller will agree to put the rent money towards the purchase price!

How much have you paid in rent over the years??

When I saw these numbers, it really astonished me. I have paid rent over the years and have never really done these calculations. Where did all of that money go? I have nothing to show for it. With a house, you own a piece of property and at some point in time you will earn that money back and more. Many times, the mortgage is less than what you are paying in rent! Also, your rent usually has an annual increase which really hurts too. It's not a left or right brainer, it's a no-brainer!

First Time Home-Buyer Tips

1. Get your Finances on track! Check your credit and make sure that you have some money set aside for a downpayment* and closing costs.* *Ask me about a "gift"
2. Do your homework and research first. Decide what it is that you want in a home. Write down what you must have in a home...Specific features,etc. That will help you and me get on the same page as to your needs and wants.
3. Talk to a lender before you start looking for a home. This helps to be able to make an offer on a property when you know it's the right one.
4. Decide when you could move. Do you have a lease, are you allowed to sublet, etc?
5. Be picky, but also remain realistic. You probably are not going to get EVERYTHING on your wish list. There is no perfect home.
6. Ask Questions. This is a very big purchase and you will only do it a few times in your life. That is why I am here to help!
7. Think Long-term. Location, schools, etc are very important considerations even if you do not have children. Re-sale is what you need to think about also while purchasing.
8. Don't let yourself be house poor. Buy for your needs...not beyond them. If you purchase a very expensive home, you may have no money for decoration or maintenance.
9. Breathe. This is a large purchase and can get overwhelming at times. I will be there to answer all of your questions and concerns along the way.
10. Use a Realtor. Most agents working with buyers are FREE! I would love to help you with the purchase of your first home. It is an emotional experience and I will be with you each step of the way.

Why Own?

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.