JULY 15TH, 2009
By MATT STEINMETZ
Baltimore sues Wells Fargo
The city of Baltimore claims that they have lost tax revenue because Wells Fargo put buyers into subprime loans that should not have qualified for a loan, and that Wells encouraged loan officers, through compensation packages, to give subprime loans to borrowers even if they could get better loans. All of the foreclosures have taken away property tax revenue and Baltimore want to be paid. Two former loan officers have made statements to support that Wells Fargo encouraged this sort of steering clients into subprime loans. I am curious to find out the results of this. If Wells Fargo is found liable for this, what do you think should be the penalty? Comment below.
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Matt Steinmetz
Envoy Mortgage
Concord, CA Contra Costa County
JULY 15TH, 2009
By MATT STEINMETZ
Reuters says U.S. Officials are weighing a plan to allow borrowers who are falling behind on their mortgage payments avoid eviction by surrendering their home to their lender and paying the lender rent. This is in the think tank because Obama’s Hope for Homeowner’s Plan is not working as they’d hope. This way those who cannot afford their home can still ive in the home for several years. Do you think this is a good idea? Comment where you see “Responses” and at the top right.
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The article goes on to say that 1 in 5 homeowners owe more than their property is worth and with record unemployment today, the Treasury Dept. is looking at ways to save jobless homeowners from losing their home.
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Matt Steinmetz
Envoy Mortgage
Concord, CA Contra Costa County
JULY 8TH, 2009
By MATT STEINMETZ
Vice President Joe Biden said the current administration may have miscalculated the jobless problem facing America, as to how bad it would be. Another stimulus plan would mean more Treasury auctions. You know from my previous posts that Treasury auctions can take money away from bonds and increase mortgage rates. A new plan would also cause inflationary problems which would also mean higher rates.
Many Banks that held off on foreclosing on delinquent mortgages are now planning to move forward. A lot of banks held off because they signed up for Obama’s Home Stability Plan, but reports show that a large amount of the loans that have been modified by the lender are still delinquent. People are still not paying their mortgages, even after modifications go through. Not only does this clog up the modification departments for those who want help and would pay, but it tells the lenders the pograms don’t work and perhaps foreclosure is the way to go. Either way, a new wave of foreclosures is on the horizon and this will depress home values further. This is good news if you are in the market to buy.
Matt Steinmetz
Envoy Mortgage
JULY 3RD, 2009
By MATT STEINMETZ
Here is a link to the flyer
New $8,000 Tax Credit for First-time Home Buyers- is set to end soon!
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new
$8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT
have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax
you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be
claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn’t owned a home in the 3 years prior to a purchase of a primary residence may qualify
for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer’s
modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a
joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married
taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you
or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer,
cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as
having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a
typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home
first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having
already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use
form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate.
Add to that this $8,000 gift from the government, and renting a home just doesn’t make much sense.
If you or someone you know is ready to stop paying the landlord’s mortgage and start building equity in your own home, give
us a call. We’ll run the numbers and see what makes sense for your individual financial needs.
Matt Steinmetz
Envoy Mortgage
JULY 1ST, 2009
By MATT STEINMETZ
The ADP report came out today with much worse unemployment data than expected, though better than May numbers . Tomorrow is the official day for the jobs report and the ADP report is not totally reliable it is a sign that June was not a good month for employment figures. An unstable economy may push investors to the bond market for safety which would help improve mortgage rates. Counteracting this event is China’s manufacturing sector, which is currently expanding. This gives the stock market a boost as investors may feel that the global economy may be recovering. Remember stocks and bonds are usually on a see-saw so when investors put money in one, they take money out of the other. For mortgage rates to improve investors need to put their money in the bond market.
Though rates are still great and in the 5′s, the weekly mortgage application report shows applications are down 18.9% per the Mortgage Bankers Association. Have a great day, as of today the week and the year are half over.
Oh and California is broke and paying people with IOU’s! This will affect the nation as CA consists of 12% of the nations gross national product.
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