Beacon Title & Escrow Services, LLC

First-Time Home Buyer Tax Credit Extended

rattelaw — Mon, 09 Nov 2009 20:00:30 +0000

According to MarketWatch.com, the $8,000 first-time home buyer tax credit has been extended into 2010. The credit, which is currently scheduled to expire on November 30th, will reportedly be extended until the end of April 2010.

So, if you’ve been thinking of buying your first home, you can still take advantage of this popular tax credit.

For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

The tax credit may also be expanded to more than just first-time home buyers. If the measure is approved by Congress, then repeat buyers will receive a $6,500 tax credit for purchasing a new home.

OWNER’S TITLE INSURANCE; Quite possibly the best money you’ll ever spend.

rattelaw — Mon, 20 Apr 2009 15:53:33 +0000

For most of us, buying a home is the largest and most important investment we will ever make in our lives. We will spend hundreds, even thousands, of dollars each and every year to protect our house and furnishings from fire and other disasters, but many people are reluctant to pay a small one-time fee to protect the most valuable part of home ownership – the ownership itself. An owner’s title insurance policy is a relatively inexpensive one-time cost that will do just that.

Owner’s title insurance protects the homeowner’s title, or legal ownership, of the property free from any unknown encumbrances. An encumbrance is anything that burdens the property, such as a lien or easement. While most encumbrances will be discovered during a thorough search of the public records at the local Registry of Deeds, many encumbrances cannot be determined by a title search. A few of the most common hidden risks that can cause loss of title or create an encumbrance on title are:

False impersonation of the true owner of the property
Forged deeds, releases or wills
Undisclosed or missing heirs
Instruments executed under invalid or expired power of attorney
Mistakes in recording legal documents
Misinterpretations of wills
Deeds by persons of unsound mind
Deeds by minors
Deeds by persons supposedly single, but in fact married
Liens for unpaid estate, inheritance, income or gift taxes
Fraud

In the case of any defect such as these, the owner’s title insurance will pay for defending against any lawsuit attacking the owner’s title, and will either pay to clear up the title problems or pay the insured owner’s losses. The cost of an owner’s title insurance policy for an average home of $250,000, is only about $575. Compare that to the thousands, or tens of thousands, of dollars it will cost to hire an attorney to defend you in a lawsuit or repair the title defect, and it is easy to see why title insurance could be the best money you’ve ever spent in your life.

For more information about owner’s title insurance, contact Attorney Chris Ratté at ChrisRatte@RatteLaw.com.

TIMING IS EVERYTHING: First-Time Homebuyer Tax Credit Increased for 2009.

rattelaw — Wed, 18 Mar 2009 19:31:38 +0000

The United States government wants to pay you to buy your first home in 2009. As part of the massive economic stimulus package recently approved by Congress, first-time homebuyers will receive a tax credit up to $8,000.00 for purchasing a home between January 1, 2009 and December 1, 2009. This credit may be taken on either your 2008 or 2009 tax returns.

The 2009 homebuyer credit is a true “refundable” tax credit, which means that: (1) the taxpayer gets to take the credit whether or not they owe that much in taxes and (2) the taxpayer does not have to pay it back. This is a substantial improvement over the $7,500.00 tax “credit” passed by the Bush Administration in 2008. If you bought your home in 2008 you will be able to take a $7,500.00 tax credit, but you will have to pay it back over fifteen years. In essence, the 2008 credit was not a credit at all but a zero-interest loan from the government.

There are some limitations on the 2009 credit. First, the amount of the credit is limited to 10% of the purchase price of the home or $8,000.00, whichever is less. With the exception of some condos and small houses, however, most homes will max out the credit. Second, the credit is limited to single homebuyers with an adjusted gross income of $75,000.00 or married buyers with an AGI of $150,000.00 or less. Taxpayers with higher incomes may be eligible for a reduced credit. Third, taxpayers must own the home for at least three years. If you sell your home within three years, you may have to repay the credit to the government. Lastly, the credit is only available to first-time homebuyers. This may not be quite as limiting as you think, however, as the term “first-time homebuyer” is defined as any person who has not owned a primary residence in the last three years. If you owned a home more than three years ago, you may still qualify. Even if you currently own other real estate, such as investment property or a vacation home, you may still qualify for the credit.

For more information about the First-Time Homebuyer Tax Credit, contact Attorney Chris Ratté at ChrisRatte@RatteLaw.com.