HUD came out with updated guidance to lenders that will significantly impact borrowers/ buyers that had a foreclosure, short sale or bankruptcy in their past that was a direct result of an Economic Event. If lenders can document that the Economic Event was the result of a Loss of Employment or significant loss of Household income beyond the borrowers control and has demonstrated full recovery from the event, then the buyer/ borrower(s) would now have a 1 year seasoning requirement from the event instead of the present published guidelines of 3 years. The Economic Event is defined to have been a 20% or more loss of income for a period of at least 6 months. Documentation of this event will be required. During the 1 year seasoning time, the borrowers must demonstrate a 12 month good payment record with their established credit history and also complete HUD approved housing counseling prior to the close on a new purchase.
Wednesday, September 4, 2013
Monday, March 18, 2013
Impact of Unreimbursed Business Expenses
If you are currently thinking of buying a home, consider the following before filing your taxes:
If you take unreimbursed business expenses as a tax deduction on your 2012 taxes this could effect how much a leneder can qualify you for.
Thursday, August 23, 2012
The Senate Finance Committee has crafted and sent to the full Senate a package that would extend the mortgage relief provision for an additional year, through Dec. 31, 2013.
The Senate was unable to act on the bill before adjourning for its August break and the party conventions. The Senate reconvenes on Sept. 10. Chairman Baucus (D-MT) had expressed a wish to finish this package before the election in order to provide certainty about the extension (or not) of more than 50 provisions. Nonetheless, it is not known if the package would also be considered in the House before the election.
In addition to the mortgage cancellation relief provision, the package also includes a relief provision to limit the impact of the Alternative Minimum Tax (AMT) in 2012 and 2013. The 15-year cost recovery for leasehold improvements is renewed (it had expired Dec. 31, 2011) and extended through Dec. 31, 2013. The provision that permits the costs associated with brownfields environmental cleanup was NOT included in this extender legislation.