Extended Home Buyer Tax Credit 2009/2010

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Click here for more information.

*Source: Realtor.org

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

Washington, October 23, 2009
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®.


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*Source: Realtor.org

Unintended consequence of mortgage modifications: falling credit scores

NEW YORK — Victor Stern thought his money troubles were over when he got approval to modify his home loan.

Then his credit score dropped 121 points.

Stern, a business development director at an information technology company in Charlotte, N.C., said he was shocked to see his credit score drop to 619 from 740 after entering the trial period for a loan adjustment under President Barack Obama's Home Affordable Modification Program. A salary reduction caused him to seek a change in the terms of his loan before he missed any payments...

To read the complete story click here

*Source: Alexis Leondis, BLOOMBERG NEWS

C.A.R. reports July sales up 12 percent, prices declined 19.6 percent

Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, C.A.R. reported yesterday.
More Info: http://www.car.org/newsstand/newsreleases/julysalesandpricereport/

*Source: CA Association of Relators

How Does a Refi or Loan Mod Affect Your Credit?

Refinancing and loan modifications can affect your FICO score in a few areas. How much depends on whether it's reported to the credit bureaus as the same loan with changes or as an entirely new loan.If it's reported as the same loan with changes, three pieces of information associated with the loan modification may affect your score: the credit inquiry, changes to the loan balance, and changes to the terms of that loan. Overall, the impact of these changes on your FICO score should be minimal.If it's reported as a "new" loan, your score could still be affected by the inquiry, balance, and terms of the loan, along with the additional impact of a new "open date." A new or recent open date typically indicates that it is a new credit obligation and, as a result, can impact the score more than if the terms of the existing loan are simply changed.

*Source myFICO.com

Uptrend Continues in Pending Home Sales.

Pending home sales are up for the fifth consecutive month. NAR's forward-looking Pending Home Sales Index for June indicates signed contracts rose 3.6 percent to an index level of 94.6 from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was in July 2003.

For more information, click here: http://www.realtor.org/press_room/news_releases/2009/08/uptrend_pending

*Source Realtor.org