UPDATE 1-Senate votes to extend US home tax credit deadline

WASHINGTON June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.

The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.

Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.

The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.

The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O'Callaghan)

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IMPORTANT: Did you hear this before: No discounts unless use our Mortgage Company and Title Company, if yes, please keep reading...  HUD is reconsiders RESPA rule regarding incentives for New Buyers...

WASHINGTON – June 4, 2010 – The U.S. Department of Housing and Urban Development (HUD) is taking a closer look at the Real Estate Settlement Procedures Act's (RESPA) prohibition against the "required use" of affiliated settlement service providers.

It violates RESPA if a consumer is required to use a particular mortgage lender, title company or other settlement service provider that's affiliated with another business in their mortgage transaction. However, it's less clear whether it's a RESPA violation if it is offered as a discount or other incentive to steer them to a lender, title company, etc. Full Story...

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Florida Realtors Association want to keep you informed about

BP Oil Spill Status

As the Gulf Coast oil spill continues to affect Florida's coastal waters and shorelines, there will be many questions and “what if’s” regarding its impact on the state and Florida's real estate community. Bookmark this page, and check often for business updates and tips.

Beach Conditions:  go to: www.VISITFLORIDA.com, posts up-to-the-minute information on any city or region in Florida.

Florida State Parks: go to: www.floridastateparks.org or by calling 850.245.2157.

Fishing Conditions: go to: www.bp.com, for the latest information click here and Scroll to “Current Ops” at the top and click on “Fish and Wildlife Report.”

Health Department: go to: www.dep.state.fl.us, The Department of Health and DEP are monitoring health and environmental impacts to Florida’s beaches and will notice an advisory if conditions become unsafe.

Information provided by: FloridaRealtors.org June, 2010

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Commercial vacancies to peak near early 2011

WASHINGTON – May 27, 2010 – Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011, according to the National Association of Realtors. Full Story...

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Prepare your business for hurricane season

TALLAHASSEE, Fla. – June 1, 2010 – The 2010 hurricane season starts today. Homes should be fortified and larders stocked, and businesses should prepare now for a possible interruption of services. Forecasters already call for an active season with a high likelihood for major hurricanes Category 3 or above. Full Story>

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Existing-Home Sales Jump On Tax Credit

Investor's Business Daily – Mon May 24, 7:16 pm ET , Home resales rose more than expected to a five-month high in April thanks to the expiring homebuyer tax credit, an industry report said Monday. But the glut of homes on the market grew, and sales should soon slow with the end of government support. Full Story »

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Orlando Sentinel Newspaper: April 2010;

A Sentinel analysis: The rate of Short Sale vs Foreclosure

by zip code in some areas

Distress sales, when a homeowner is forced to sell a house, are commom throghout Central Florida. But affluent homeowners are better able to save their credit by getting the bank's approval to do a Short Sale, meaning selling the property for less than the amount owed on the mortgage... http://bit.ly/dvPoyo

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New homes rising

Builders are actually surprised at the brisk pace at which their new houses are selling.

Take K. Hovnanian's Harbour Isles project in Apollo Beach, just south of Tampa. The builder has sold 12 houses in eight weeks to young professionals, retirees from up north, as well as a few real estate agents. Demand has been so strong for the homes, which start at 1,850-square-feet, that K. Hovnanian recently upped the opening price by $10,000 to $169,990.

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HUD to permit e-docs in transactions

WASHINGTON – April 12, 2010 – The U.S. Department of Housing and Urban Development (HUD) announced that it would allow electronically signed documents in transactions involving home loan guarantees by the Federal Housing Administration (FHA). The National Association of Realtors^® (NAR) praised the decision.

In a Mortgagee Letter released last week, HUD announced guidance for accepting electronically signed documents from third parties, that is, sales contracts.

“This is a great step forward in speeding up the real estate transaction and making it easier for buyers, sellers and real estate professionals to complete transactions timely and efficiently, ” says NAR President Vicki Cox Golder. “We applaud FHA’s refreshing attitude towards modernization and making electronic signature capabilities acceptable for its mortgage transactions.”

Second Century Ventures, NAR’s venture capital arm, offers an e-signature tool, DocuSign.

According to Dale Stinton, NAR chief executive officer, the e-signature process is convenient and legally compliant. Rather than driving across town or forcing clients to find a fax machine, real estate professionals can execute agreements with buyers and sellers electronically, eliminating the old process of printing, faxing and waiting for a return fax.

© 2010 Florida Realtors®

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 May 2009: Federal Tax Credits

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

• The tax credit does not have to be repaid.

• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

• The credit is available for homes purchased on or after January 1, 2009 and before December 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

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