Northern Michigan Real Estate

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If you are lucky enough to be selected by the IRS to show proof of eligibility for the First-Time Homebuyer Credit or the Special Rule for a Long-Time Resident, you will need to make sure that you have the following information for them.

You will need to provide all fo the following if it was not filed with your return:

• A copy of the settlement statement, the buyer(s) and seller(s) names, the property address, the purchase price and date of purchase.  If the settlement statement is unsigned, also provide a copy of the final purchase/sales contract.
• If you purchased a mobile home, a copy of your executed retail sales contract, the property address, the seller(s) and buyer(s) names, purchase price and date of purchase.

AND

• A copy of your most recent monthly/quarterly mortgage statement.

              NOTE:  If your purchase was financed through a private mortgage and statements are not available, you will need to provide a copy of a cancelled check (front and back) from  a payment made within the last 3 months.  If your purchase was a cash sale, you will need to provide proof you paid for the property - a copy of your cancelled check(s) (front and back) or other payment instrument.

AND

• A copy of the certificate of occupancy if the home you purchased was a newly constructed, or a manufactured (modular or mobile/trailer) home and you are the first occupant(s).

You will need to show verification that the new property is your primary residence and will have to provide at least 2 of the following:

• Current driver's license or other state-issued identification showing your name and new address.
• Recent pay statement (within the last 2 months) showing your name and new address
• Recent bank statements (within the last 2 months) showing your name and address
• Current automobile registration showing your name and new address
• Change of address confirmation from the U.S. Post Office showing your former and new address
• Contract from moving company indicating you receipt of transported household items, showing points of origin and destination.

If you are claiming the credit as a Long Time Resident, you must verify that you lived in the prior residence for 5 consecutive years, during the 8 years prior to the date you purchased your new primary residence, please provide at least 2 of the following:

• Copy of the final closing contract showing the buyer(s) names, date of purcahse and proeprty address of your prior residence.
• Copies of tax statements and cancelled checks showing real estate tax payments for the property for at least 5 consecutive years; the information should show the address of the property.
• Copies of annual mortgage interest statements for 5 consecutive years.
• Any other information which shows your ownership of the prior residence, and that you used it as a principal residence for 5 consecutive years.  This may include copies of homeowners insurance policies, statements from utility companies, or school records which show your name(s) and address.

Not that everyone will get an audit for their tax credit but if you do, you can be prepared for what they will ask for.  You will only be given 30 days to provide this information back to them.

Hope that this information has been helpful.

Rural Development guaranteed loans are slowly starting to lose their allotment for this year.  In an area where this lending source is prevalent, this presents a challenge for those buyers who are looking for a ZERO DOWN program for their home purchase.  There is an option left out there for ZERO DOWN.

Veterans' Administration Loans

100% financing for purchase

No down payment required

No monthly mortgage insurance

Low closing  costs

Low fixed rates

First Place Bank in Traverse City has staff that is experienced in VA loans.

If you qualify for a VA loan, you also qualify for Homes for Heroes

Homes for Heroes offers Realtor , lender, title company and other associated discounts from local businesses.  Call today to for more information about the program or register on line

www.HomesforHeroes.com

Homes for Heroes Discounts

Did you know that you could be saving hundreds or even thousands of dollars on the purchase or sale of your home?  You can with Homes for Heroes.  The mission of Homes for Heroes is dedicated to those who give so much to our communities on a daily basis.  Military Personnel, Firefighters, Paramedics, EMT's, Police Officers, Educators, and Medical Personnel can visit  www.homesforheroes.com and register for these savings right on line.  No additional paperwork to do and they get their savings right at the closing table.  From their affiliate Realtor, our heroes receive 25% of the commission earned on their side of the transaction.  Our affiliate Lenders offer a 50% reduction in their loan origination fee and or affiliate title company offers a substantial reduction in their processing fee.  Depending on the area that you are in you could also receive many additional discounts from Friends of Heroes.  Friends of Heroes are our community business partners who have graciously agreed to offer discounts to Heroes participating in our program.  So, if you fit into this category or know someone who does, please take a minute to visit the web site www.homesforheroes.com. 

Many home owners are justifiably confused when it comes to a short sale.  Clients are relying on their Realtor to be the expert that will assist them through their home selling process.  A short sale is a very challenging process and can be devastating for a client if the appropriate steps are not taken, in a timely fashion with the lender.

Do I Qualify For A Short Sale?

The mere fact that you owe more than your home is currently worth does not qualify you for a short sale.  You must be able to show financial hardship and the inability to no longer afford your mortgage payments.  Lenders will look at what your monthly shortfall is (total monthly expenses versus your monthly income).  They will also look at your other assets that could be liquidated in order to continue to pay mortgage payments.  The one thing that is protected is your retirement.  Banks cannot expect you to liquidate your retirement to pay mortgage payments.

How Long Does A Short Sale Take?

A short sale can take between 100 days and 18 months.  With the process taking this long, you can see how many home owners slip right from not being able to make payments into foreclosure.  It is critical tht your Realtor be extremely knowledgeable with the entire process of a short sale.

Can A Third Party Professional Be Beneficial?

If the right third party is used, this can streamline the short sale process.  Settlement Agency of Michigan is a third party agency that Realtors can use to assist in the short sale process.  Settlement Agency of Michigan (SAM) utilizes their 30 years of title and escrow experience with technology to manage the short sale process and keep the interested parties informed of the file status.  The team works exclusively with short sales and are not affiliated with traditional real estate transactions.  There is a tremendous amount of paperwork and information gathering that must be obtained form the home owner and relayed to the lender.  One transaction could require dozens of follow up phone calls daily to make sure that all of the details are being adhered to and that all of the lender requirements are being fulfilled.  SAM works with many of the national and local lenders and is very apprised of the ever changing requirements of these lenders.  If your agent is using a third party agency to manage the paperwork portion of the short sale transaction, if frees them up to market and find a buyer for your home in a timely manner. 

203K Rehab Loans

Many times, our buyers find a home that needs repairs done to it and they do not have the additional funds to make those repairs.  There is good news for these clients.  If the client can qualify for a higher loan amount, they might want to look at a 203K rehab loan.  These loans allow financing up to $35,000 for repairs and improvements with cash up front.

Eligible Repairs:

1. New roof, gutters and downsprouts
2. Repair or replace plumbing and electric
3. New furnace and central air
4. Fresh paint inside and out, new carpet and tile
5. Purchase new appliances
6. Build a deck,patio, or porch
7. Repair or replace septic or well
8. Waterproof, finish, or rehab the basement
9. emodel the kitchen or bath
10. Install new windows, doors, and insulation
11. Improve accessibility for the disabled

Ineligible Repairs:

1. Major remodeling (i.e. moving load bearing walls)
2. Repair structural damage
3. New construction or room additions
4. Add a garage
5. Landscaping
6. Rehab a manufactured home

For more details on our you or your client can qualify for this type of loan, contact Holly Hack at First Place Bank in Traverse City, MI - 231-409-4140 or Holly@hollyhack.com