Northern Michigan Real Estate

Child and Family Services of Northern Michigan is gearing up for our Festival of Tables Fund-raising event.  The event will take place at the Hagerty Center in Traverse City, MI on May 14th and 15th.  This is the main fund-raising event for the organization and if you have not attended this event in the past, you MUST attend this year.  Holly Hack, Loan Officer for Bank of America and Colleen Macdonald, Owner of Mustards restaurant are the co-chairs of the event and are doing a fabulous job to create a fun and festive event.  There will be a silent and live auction, lots of food and many wonderful attendees.

Child and Family Services opened in traverse City in 1937 as a branch of the Michigan Children's Aid Society, whose purpose was to "accept homeless, neglected and destitute children and to find homes for them."  As northwestern Michigan has grown and changed, so, too has Child and Family Services changed to respond to the issues relevant to children and families today.  Through programs that address the continuum of people's social and emotional needs, the professionals of Child and Family Services improve the health and well-being of the whole community. 

Child and Family Services is a nonprofit organization serving some 4,000 people in 12 counties each year.  offices in Traverse City and Habor Springs house more than 60 staff members.  Child and family Services mission is:  "to promote the safety and well-being of children, adults and famalies by providing services that foster and develop social and emotional healing and growth."

Child and Family Services programs are:

• foster care and foster home licensing
• infant and special needs adoption services
• behavioral health services/counseling
• juvenile justice, including substance abuse monitoring, community service supervision, mentoring, and experiential therapy
• VOCA:  treatment and support for child survivors of sexual abuse
• pregnancy and birth counseling
• Family Group Decision Making:  an intensive family preservation program
• safe, supervised visitation for children and families
• Development:  securing the financial future of the organziation

We are currently seeking sponsors for our fund-raising event and would urge each and everyone of you to look deep into your heart and consider making a donation to this wonderful event.  For additional information, please contact Christine Stalsonburg, Sponsorship Committee Member  at 231-944-0854.

We are changing children's lives - One child at a time.

2009 Year End Sold Market Analysis
Five County Area (Single Family):
Grand Traverse, Antrim, Leelanau, Kalkaska, Benzie

I recently attended a training through Bank of America in Traverse City on FHA 203K Rehabilitation Loans.  This program was presented by Corbin Buttleman, Holly Hack and John Klingelsmith.

Potential buyers for proeprties in need of repairs are facing significant challenges for financing these days.  The solution to this challenge is the FHA 203K Rehabilitation Financing Loan.

Highlights

• One loan purchase price plus repairs
• FHA mortgage limits apply for area
• Minimum rehab $5,000
• Health and Safety first
• Customer desires
• Value based on after improvement value (loan not to exceed 96.5% of improved value)
• Convert a one unit to a two, or a two unit back to a SFR

Program Requirements

• Owner occupied only
• Down Payment 3.5% of sale price plus rehab amount
• Allows for 6% seller concession
• Self help is allowed
• Loan will be based on contractor/labor total any unused portion returned to customer via principle reduction

Rehab of over $35,000

• Customer meets with a 203K consultant to determine required repairs and additional items desired from customer
• Work write up completed by consultant and supplied to lender/appraiser
• As is value determined and after improved value
• Loan is processed and closed

Loan amounts under $35,000

• Streamline product
• Buyer provides two bids from licensed contractors for any work desired
• Contractors are registered with Bank of America
• Loan is processed and closed
• Buyer receives half of the escrow about two weeks after closing, remainder is dispersed after work is completed.

Rehab Items

• Structural alterations and reconstruction
• Modernization to homes function
• Elimination of health and safety issues
• Changes to improve appearance
• Repair plumbing, new well/septic
• New roof, gutter, downsprouts, windows
• New flooring, appliances
• Making home handicapped accessible
• Energy conserving improvements
• Renovate existing or add new bathroom
• New kitchen
• New furnace/air conditioning

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.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

Women's Resource Center is sponsoring an evening dedicated to Speaking out against domestic violence.  There will be a series of several short films from around the world to bring attention to domestic and sexual violence against women of all age, race and ethnicity.

This event will  held at the Central United Methodist Church, located at 222 Cass St.  in Traverse City on Tuesday, October 27, 2009 at 7:00 pm.

This venue is free to the public and everyone is welcome.  A reception with refreshments to follow screening.  Domestic Violence Awareness pins, buttons and bumper stickers will be available!

Films Include:  My Sister, We All Love You, Little Rabbit in a hole, Scars, Child's Play, Under Their Skirts, Scrambled, Angel and I Slept With Cookie Monster.

Domestic is all around us and we must be aware of the signs and resources available.  Please join us for this event.

Northern Michigan Chapter of Women's Council of Realtors (WCR) was recently chartered at the WCR State Meeting in Traverse City, MI.  Currently, there are 29 National Realtor members and 11 Local Affiliate members in the chapter.

WCR is an organization that all women should look into.  The leadership that this organization provides to our profession is incredible.   The professional and personal growth that is extended by the members to each other is quite amazing. 

At the recent State Meeting that was held in conjunction with the Michigan Association of Realtors convention in Traverse City, MI  I met some of the most incredible women in our industry.  everyone was willing to share ideas and help with the mentoring of our new members. 

If you are not a member of your local Chapter of WCR, you should attend a meeting and see what the organization is all about.  If you become actively involved, you will not be disappointed.  You can take a sneak peak at the organization by visiting their web site at www.WCR.org

The Northern Michigan Chapter of the Women's Council of Realtors is presenting a Top Producer Panel.  This panel discussion will be hosted at the Holiday Inn in Traverse City on October 1, 2009.  We will hear from 3 of the top producing agents in the Grand Traverse Area on how to survive and thrive in our current economic situation.  Come join us for some great insight on our current market?

When:            October 1, 2009

Where:           Holiday Inn, Traverse City

Time:             11:30 - 1:30

Cost:              $12 for WCR members and $16 for Non Members

Lunch will be provided

It was just announced Friday, that Traverse City loan processing centers for Bank of America are closing down.  All loan processing will be done down state.  I think that we will continue to see the consolidation of these loan processing centers through the country.  It is all part of the lending institutions making an attempt to once again be profitable.  Consumers and Realtors should not be alarmed at this situation, as it should still be a seamless process for the loan applications.  A strong loan officer will be able work through the challenge of not having a local processor for their files and the consumer should not see any delays in their transactions. 

I use a loan officer from Bank of America, Holly Hack here in Traverse City and she is fabulous.  One of the elements that sets her apart is the fact that she was once a loan processor.  Working the backof the house has enabled her to know the loan application and processing system frontwards and backwards.  She knows everything that the processors are going to ask for based on the issue that a file may have.  Having someone with this sort of insight to the loan application process is invaluable.

If you are looking for a mortgage or to re-finance, give Holly a try.  Her direct line is 231-409-0771. 

Northern Michigan Chapter of Women's Council of Realtors will be hosting a Top Producer panel in Traverse City, MI.

Join us for a special luncheon event on October 1, 2009.  A panel discussion offering "Tips and Techniques on How to List and SEll in our current business environment"  Linda Schaub, Deb Hall and Dewayne Kirkman have all been highly successful in the Real Estate Market and continue to excel, using skills and business techniques that allow their clients success in one of the most demanding markets we have experienced.  They will share how they have put their brand in the marketplace, and provide valuable industry information and tools to achieve success in the real estate sales business.

Location:  Holiday Inn  -

Time:  Luncheon 11:30 - 1:30

Cost:  $12 for WCR members and $16 for non-members

Please RSVP by September 28th  231-941-2121  ext 301