Aundrea Beach-Greco's Mortgage Blog: Keeping you in the know

Aundrea Beach-Greco Mortgage Blog

Documents That Help You Maximize Real Estate Tax Breaks

February 1st, 2012 7:18 PM

The benefits of being a homeowner are felt all year long, but at tax time it gets even sweeter

Technically speaking, tax day isn't until April 15th. But for Americans who expect a refund—including many homeowners who want to cash in on real estate related tax perks—filing early means quicker cash in hand.

If you count yourself in that number, you'll like our handy guide which outlines 9 ways to help reap every penny of the tax rewards you're earned by virtue of owning a home. Just round up these pieces of paper as you prepare to file and see what your home can do for you.

1. Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.

(If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)

2. Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed.

If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet - if that’s the case, look to #3, below.

3. Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.

And here’s another handy hint - if you can’t find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well. BUT.... If your Aundrea's client who has closed a transaction last year, yours is already in the mail!

4. Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.

5. Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or completed a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them with income in the amount of the mortgage debt that has been canceled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.

6. Utility statements for a home office. For the average everyday homeowner who works at their employer’s place of business, utilities are not deductible (sorry!). But if there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting and repairs, as a result. Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.

7. Income and Expense statements from rental properties. Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated; you’ll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.

8. Contractor receipts from energy efficient home improvements. Under the Nonbusiness Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10% of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.

9. Mortgage Credit Certificate (MCC). If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can’t use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.

No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. Turbo Tax may not be sufficient for your needs. And you should always consult with a realtor, tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.

If you need a recommendation to a CPA or tax preparer, please don’t hesitate to contact me.

Yours Very Truly,

Aundrea Beach-Greco

The Beach-Greco Team
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services
Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA
info@aundreabeach.com
www.AundreaBeach.com | www.TailorMyMortgage.com

Doctors, lawyers, even beauticians adhere to strict education requirements and licensing. Do you want someone who is not bound to those standards looking at your credit and finances? Consult a CMPS™ today!

Posted by Aundrea Beach-Greco on February 1st, 2012 7:18 PMPost a Comment (0)

Subscribe to this blog

FHA Mortgage Rates Remain Below 4%...For Now...

January 31st, 2012 9:15 AM

1-31-12

FHA loan rates have stayed relatively steady, and below 4.00% on average throughout the US last week, though fees on these government backed loans are set to increase later this year, according to a mortgage rate research website. In December 2011, Congress voted to offset the expense of a payroll tax extension with an increase in mortgage fees for conventional loans sold to Fannie Mae and Freddie Mac, and for FHA loans backed by the Federal Housing Administration.

For FHA mortgages the additional fee will be in the form of a 0.1 percentage point increase in the mortgage insurance premium paid by mortgage holders. The FHA has yet to release information on when the fee increase will take place.

Though the fee increase is small, it will mean a slightly higher payment for new FHA borrowers after it goes into affect. Current FHA mortgage holders will not be impacted, nor with those who close their loans before the implementation of the increase. If an existing FHA loan is refinanced into a new Fannie Mae, Freddie Mac, or FHA mortgage after the fee rises it will be in place on the new loan.

An increase of $10 to $20 per month probably isn't going to make the difference of someone qualifying for a loan, or change whether it's affordable, but with rates as low, or close to as low as they have ever been, and some additional costs on the horizon, it is certainly advisable to consider an FHA refinance or purchase loan now rather than waiting.

If I can help in any way or answer questions, please don't hesitate to contact me.

Getting pre-approved for a home loan doesn't cost anything - but your time.

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services
Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA

info@aundreabeach.com
www.AundreaBeach.com | www.TailorMyMortgage.com

Doctors, lawyers, even beauticians adhere to strict education requirements and licensing. Do you want someone who is not bound to those standards looking at your credit and finances? Consult a CMPS™ today!

Posted by Aundrea Beach-Greco on January 31st, 2012 9:15 AMPost a Comment (0)

Subscribe to this blog

Use your tax return refund as the down payment on a home

January 30th, 2012 12:01 PM

1-30-2012

IT’S TAX TIME! Many of you have begun to file your taxes, and if that is the case, then good for you! On the other hand, thousands of others have not! Tax returns will be in the mail or deposited into millions of bank accounts over the next couple of weeks and months. Why not use your tax return as a down payment for the home that you’ve been wanting!

Due to limited options for 100% financing, buyers often find they are unable to purchase a home due to unavailable resources for a down-payment. However, many people overlook the fact that their tax refund can be used.

Now is the time, stop waiting to see if you can qualify for a home, you most likely can. The market is moving and the pattern is clearly showing signs of recovery. If you look at the homes that have been sold in the last few months, it is clear that buyers are finding amazing deals.

These are historically low interest rates. Ask your parents or grandparents about interest rates. They will tell you horror stories of high interest rates throughout their lifetime. Don’t wait on the fence any longer, now is the time to find a great deal.

Today there are many homes that cost $100,000 or less in the Las Vegas Area. You have choices... something that many potential homebuyers throughout history have lacked. No lottery, no pressure, resale or new homes AND you will have a tax advantage next year when you file your taxes.

If you don’t believe me, ask someone!

If you have any further questions, please don't hesitate to contact me. Let's get you pre-approved today and into that new house.

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA
info@aundreabeach.com
www.AundreaBeach.com| www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on January 30th, 2012 12:01 PMPost a Comment (0)

Subscribe to this blog

Had a BK, FC or Short Sale? Own a home sooner than you think!

January 16th, 2012 8:17 PM

Buying a home is a challenging goal for most hopeful homeowners. But for those who have experienced a bankruptcy, foreclosure or short sale, the hurdles are even higher. It won’t be easy to obtain a mortgage after a major derogatory credit event, however with enough time, discipline, and desire, you can own your own home again.

Here’s what you need to do:
Check out this chart...

- Clean up your credit. Start now so you have time to work on items that may take a while to correct.

- Consult a professional. Work with someone who is in the know than can guide you through the process. (Aundrea has been in the business for over 15 years)

If you know someone who may benefit from this information, please forward this email to them.

I'm happy to help!

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA

info@aundreabeach.com

www.AundreaBeach.com | www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on January 16th, 2012 8:17 PMPost a Comment (0)

Subscribe to this blog

HARP 2.0 Update...you may have to wait until March

January 13th, 2012 3:01 PM

1-13-2012

As many of you know, the original version of HARP had many roadblocks that made it difficult for homeowners to refinance. For example, the program only assisted those with mortgages with a loan-to-value ratio between 80 percent and 125 percent, but in many hard-hit housing markets across the country, homes have lost more than 50 percent in value making those homeowners ineligible for the program.

How will the HARP 2.0 program change?

Some of the major changes to the HARP 2.0 program:

No underwater limits. Borrowers will now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits are currently set at 125 percent.
Eliminating appraisals and underwriting. Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
Modified fees. Certain risk-based fees for borrowers who refi into shorter-term loans will either be eliminated or modified.
Extended deadline. The end date to get a HARP refinance has been extended to Dec. 31, 2013.

What to expect?

HARP 2.0 Guidelines are not expected to be released until March 2012.

Can you use any lender for a HARP?

Unfortunately it has been discovered that the Correspondent lending channel has not warmed up to doing the revised HARP loans. We have been told that borrowers will be best served to contact their existing servicer for a HARP loan.

With that said, I have some recommendations of mortgage professionals who are actually doing these loans up to the 125% loan to value, since I am unable to assist you at my company.

If you are underwater more than the 125%, then you'll need to wait until March to see how the government and the agencies handle the new lending guidelines.

Please send me an email if you'd like more information. I'm happy to help!

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739 | NV Lic 24392
Residential Mortgage Services

Cell (702) 326-7866
Ofc (702) 796-3453 xt. 3047
eFax (888) 738-5188
Toll Free ( 877) AUNDREA

info@aundreabeach.com

www.AundreaBeach.com | www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on January 13th, 2012 3:01 PMPost a Comment (0)

Subscribe to this blog

Freddie Mac Predicts: Mortgage Rates to Stay Low in 2012

December 28th, 2011 4:31 PM

12-28-11

Freddie Mac is out with some predictions for 2012, and front and center is the sentiment from the mortgage giant that mortgage rates will remain low in 2012.

Right now, those rates are as low as they've ever been. Those rates are low enough, but the chief economist at Freddie Mac says that's right where they'll stay in 2012.

Frank Nothaft, writing in a Freddie Mac blog this week, says rates should continue scraping the bottom at least until the middle of next year.

Nothaft's commentary also notes that the Federal Reserve policy on interest rates, which drives the mortgage rate market, should remain unchanged.

"This should keep fixed rates for 15- through 30-year product relatively low during the first half of the year, with rates edging up during the second half," he says. "Further, the Federal Reserve's August announcement that it was likely to maintain its current federal funds target through mid-2013 ensures that initial-period interest rates for one-year and various hybrid adjustable-rate mortgages will remain extraordinarily low throughout 2012."

If you have questions, please don't hesitate to contact me.

Aundrea Beach-Greco

Posted by Aundrea Beach-Greco on December 28th, 2011 4:31 PMPost a Comment (0)

Subscribe to this blog

FHA Extends Flips Through 2012

December 23rd, 2011 10:30 AM

UPDATE: 12-23-2011

A FLIP IS A HOME OWNED BY A SELLER LESS THAN 90 DAYS AND/OR THE SALES PRICE IS OVER 20% OF THE SELLERS ACQUISITION COST.

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante will extend FHA’s temporary waiver of the anti-flipping regulations.

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011. The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. All other terms of the existing Waiver will remain the same. The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. The Waiver continues to be limited to sales meeting the following conditions:

· All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

· In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value. This requires 2 appraisals, of which the 2nd one cannot be paid by the buyer. Also, RMS will require investor approval after RMS underwriters have reviewed the file.

· The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

If you have questions, feel free to contact me.

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739
Residential Mortgage Services
Cell | (702) 326-7866
Ofc | (702) 796-3453 xt. 3047
eFax|(888) 738-5188
Toll Free | ( 877) AUNDREA

info@aundreabeach.com

www.AundreaBeach.com| www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on December 23rd, 2011 10:30 AMPost a Comment (0)

Subscribe to this blog

Foreclosures still a problem in Vegas

November 22nd, 2011 5:50 PM

11-13-11

Sadly, Las Vegas is nowhere near finished with foreclosures, Larry Murphy said...

click to see full article

check your zip code statistics

In all likelihood, another 100,000 foreclosures are on the way, and at the current rate, that process will continue for another four to five years.

"It's been really horrendous that 1 out of 5 homes are foreclosures and we're not done yet," Murphy said. "By the time we get to 10 years, it could be half or 40 percent, and that's staggering. It's unbelievable."

Some areas have been hit harder than others, particularly those with newer subdivisions.

ZIP code 89086 shows 33 percent of homes, or 323, have gone through foreclosure, though the percentage is skewed by the small sampling of homes in a relatively new area of North Las Vegas, Murphy said.

Posted by Aundrea Beach-Greco on November 22nd, 2011 5:50 PMPost a Comment (0)

Subscribe to this blog

Extension for FHA Jumbo Loan Limits

November 21st, 2011 10:35 AM

11-21-11

President Signs Bill Reinstating Jumbo FHA Limits

Despite intense opposition, home builders and Realtors were successful in their lobbying efforts to pass legislation that keeps the government insuring jumbo mortgages. The bill is especially beneficial to homeowners and Realtors in California. As a result of the legislation, the Government National Mortgage Association is expected increase market share.

On Friday, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act, 2012. He has been in Asia for the past week and was in Bali the day the bill was signed.

CLARK COUNTY LOAN LIMITS

$287,500

SFR

$368,050

DUPLEX

$444,900

TRI-PLEX

$552,900

FOUR-PLEX

If I can help, contact me!

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS
NMLS 333739
Residential Mortgage Services
Cell (702) 326-7866
eFax (888) 738-5188
Toll Free ( 877) AUNDREA

info@aundreabeach.com

www.AundreaBeach.com| www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on November 21st, 2011 10:35 AMPost a Comment (0)

Subscribe to this blog

HARP refi 2.0 Update

November 16th, 2011 3:36 PM

11-16-11

HARP 2.0 Update

There hasn't been any official loan guidelines or matrices released yet, however it appears those who've had a sneak-peek at the Agency level details do not expect this next round of HARP offerings to bring much relief to homeowners...

I will keep everyone posted as we learn more about the details.

Aundrea Beach-Greco
Mortgage Advisor, CMP, CMPS™
NMLS 333739
Residential Mortgage Services
Cell | (702) 326-7866
info@aundreabeach.com
www.AundreaBeach.com| www.TailorMyMortgage.com

Posted by Aundrea Beach-Greco on November 16th, 2011 3:36 PMPost a Comment (0)

Subscribe to this blog