Federal tax credit deadline closes in for homebuyers

It's crunch time for potential homeowners who want to take advantage of the federal tax credit aimed at first-time buyers.

They have less than 11 weeks to find a house, make a deal and close on a home to make the Nov. 30 deadline.

Realtors say they are seeing a last-minute rush.

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"I have about 15 to 20 (deals) in the pipeline, and we're getting lots of inquiries," said Christopher Shaw, a Southfield Realtor who created My First Michigan Home, which targets buyers who could make use of the tax credit of up to $8,000.

The program defines a first-time home buyer as someone who has not owned a principal residence for three years.

The potential deals in the works match the number of homes sold by First Michigan Homes Realtors since the federal tax program began in February. Shaw is among the Realtors who say ending the tax credit could stall momentum of increased homes sales.

"It was like the 'cash for clunkers' program. It was the incentive that got many people to buy who may have stayed on the fence," Shaw said. "I hope they keep it going because the real estate market is not back to normal."

The tax credit was a major factor for Andy Kem and Katie Fontana in buying a Mies van der Rohe-designed home in Lafayette Park, on Detroit's near east side.

"It was too much to pass up," Kem said.

The tax credit, which is part of the federal stimulus package, covers up to 10 percent of the cost of a first home, or up to $8,000. The program has been fueling home sales in Michigan, Realtors contend. As of Aug. 22, more than 55,000 Michiganians had used the credit to buy homes, according to the Internal Revenue Service.

As of the end of August, the inventory of homes in Metro Detroit is at its lowest level since March 2006, according to Realcomp II Ltd., the state's largest realty multilisting service. Further, home sales are at the highest levels since 2004, according to Realcomp.

But foreclosures still dominate sales in southeast Michigan and the median sales price continues to sink. The median sales price in Metro Detroit was down by a third, to $64,900, compared to August 2008, according to Realcomp. Construction of new homes remains stagnant. Residential building permits in southeast Michigan fell for a fourth straight year in 2008 -- the sharpest decline in more than 50 years, according to the Southeast Michigan Council of Governments.

"The credit allowed us to compete with 'short sales,' which can be very complicated," said Ryan Cooley, a Realtor with O'Connor Real Estate and Development in Detroit. Like many Realtors in Metro Detroit, Cooley's sales increased due to the credit.

Homes in a "short sale" are priced below what the owner owes on the house, and the practice usually is done to avoid a foreclosure.

Cooley is among many real estate agents who say if someone wants to still take advantage of the credit, they need to act fast to meet the Nov. 30 deadline. On average, first-time buyers search for 12 weeks for a home, and the National Association of Realtors says a closing can take up to 60 days, depending on individual circumstances and local regulations.

There are some efforts in Washington to extend the program, just as "cash for clunkers" got a second life.

Two weeks ago, U.S. Sen. Debbie Stabenow, D-Lansing, signed on to a bill to extend the tax credit for six months.

The Obama administration has said it is evaluating the tax credit's impact and will make a recommendation soon on whether to extend it.

The National Association of Realtors wants to expand the tax credit to $15,000, and it wants to allow all buyers to be able to qualify.

Some don't believe the tax credit is ultimately the answer to the crippled housing market.

"At its core, it is a failure to fully address the risk of home value decline," said Craig Schmeizer, chief executive officer of Working Equity Inc., a San Francisco-based financial services firm that sells policies to protect homeowners and businesses from declining market value.

"It may create price stabilization by reducing inventory, but, ultimately there needs to be a private sector solution."

laguilar@detnews.com (313) 222-2760

First Time Buyer : Don't stop because you have had a

Foreclosure Credit Repair

Author: John Cooper

There is information out there that says a foreclosure will remain on your credit report for a minimum of seven years. The truth is a maximum of seven years.

This information is wrong; the truth is credit reporting is entirely voluntary on behalf of the lenders. A lender can remove a negative mark from your credit at any point in time and do not have to report the negative mark in the first place.

However I suggest you first try and dispute the foreclosure with the credit bureau. This is done by writing a dispute letter and sending it to each credit bureau.

In this dispute letter you must include why the listing is inaccurate or invalid. Reasons why include; account paid in full, not my account, information is wrong and etc.

The credit bureau will receive your letter and probably deem it invalid. This means they will respond with a letter to you requesting more information. This is nothing more than a stall tactic and is used because it only cost bureaus money to conduct an investigation.

You will have to send your dispute letter again; if you are persistent you can submit a valid dispute letter. The bureaus will then conduct an investigation into your negative mark.

If the foreclosure can not be verified then the mark must be removed from your credit. With the housing crisis many lending institutions have gone under or are in financial turmoil. Thus there is a chance they will not be able to verify the foreclosure.

If you are having trouble submitting a valid dispute or the foreclosure is verified then I recommend a credit repair service. They often have credit lawyers on their staffs that have an expert understanding of credit laws. These lawyers can use advanced dispute tactics or if necessary even take your case to court.

We expect some new case precedents with the increasing number of individuals going through foreclosure. Thus it may be in your interest to hire a service, especially if the foreclosure is not your only negative mark.

There is one last option. You can negotiate a settlement offer with the lender. You must negotiate that in exchange for your payment they will remove the foreclosure from your credit report.

In sum, negative items do not have to stay on your credit. You can have them removed and can have a clean credit report.

About the Author:

For more tips about how to repair credit after foreclosure or to read a review of a popular credit repair service Lexington Law to help remove a foreclosure from your credit or to learn how you can remove a charge off from your credit visit us.

Article Source: ArticlesBase.com - Foreclosure Credit Repair

Detroit's Bright Side: New Construction Condos available at Merrill Place

Merrill Place is giving the citizens of Detroit something to smile about. Detroit currently ranks #1 for new housing permits in the Michigan area, and Merrill Place is a shiny illustration, courtesy of S&S Development Group, LLC, that is saying no to the recession and yes to improving Detroit.

S&S Development Group is headed by CEO, Sauda Shakoor-Ahmad. Ms. Shakoor-Ahmad is a Detroit native who saw the creation of Merrill Place as an opportunity to give back to the community who gave her so much. Merrill Place is a labor of love, from the well-manicured grounds to the gated residential entrances, Ms. Shakoor-Ahmad ensured that Merrill Place would feel like home. Currently, Merrill Place is between its Phase 1 and Phase 2 of construction, with Phase 3 on the horizon.

Christopher J. Shaw and Darrick H. Scruggs, of My First Michigan Home and Cheap Metro Detroit Homes respectively, recently toured Merrill Place. Shaw and Scruggs found Merrill Place to be the ultimate alternative for individuals interested in purchasing a new home. Merrill Place is the perfect location for professionals working in the area, empty-nesters looking to downsize and modernize, and families looking for a community with history.

Merrill Place is within walking distance to Henry Ford Hospital, New Center and Virginia Park, and within minutes from Ford Field, Downtown Detroit, Comerica Park, Campus Martius, Wayne State and a variety of dining, shopping and entertainment options.

Ms. Shakoor-Ahmad currently has 3 units left in Phase 1...but they will not last long. Units feature 2 bedrooms, 1.5 baths, a spacious floor plan, large walk-in closets, finished basements (lofty style), premium stainless steel appliance, 8 ½ foot ceilings, hardwood flooring, wrought iron staircases, double glazed insulated French patio doors to the deck, an entry alarm panel at front door, hard-wired smoke detectors, pre-wired telephone and cable outlets in all main living areas, assigned and secured parking and more. All units at Merrill Place enjoy real estate taxes that are abated for a 15-year period, which are fully transferable.

Phase 2 and 3 units boast an equally spacious floor plan, 3 bedrooms, 2.5 baths, 9 foot ceilings, detached two car garages, private court yards over the garage and decks and more exceptional amenities to make easy living a reality. Units in Phase 2 and 3 are being pre-sold for occupancy in late 2009.

My First Michigan Home would love to provide you with more information about Merrill Place. Please visit www.MyFirstMichiganHome.com and www.Merrillliving.com for more details.

MFMH and CDMH are cooperatively run by Christopher J. Shaw and Darrick H. Scruggs. With more than two decades in the real estate industry, Shaw and Scruggs have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.

To learn more about first time home buying with My First Michigan Home and Cheap Metro Detroit Homes, please visit www.MyFirstMichiganHome.com and www.Merrillliving.com

Time to Buy New Construction Condo in Detroit's New Center Area

We are pleased to present The Merrill Place Condominiums. Nestled in the Historic Virginia-Park / Detroit New Center Area (.75 Miles north of the Detroit Henry Ford Hospital), Merrill Place Condominiums offer carefree loft-style living with all the benefits of home ownership. Close to Downtown Detroit and other thriving suburban communities, Merrill Place’s desired location offers convenience to area shopping, entertainment, health facilities, and major thoroughfares. Visit our decorated models and see why Merrill Place is clearly metro Detroit's finest new condominium community.

For More information please feel free to contact My First Michigan Home at
248-569-1486

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Million Dollar Dream Team Awaits New Home Buyers

My First Michigan Home (MFMH) and Cheap Metro Detroit Homes (CDMH) is excited to offer their years of experience, expertise and service as a Million Dollar Dream to first time home buyers in the greater Detroit area.

Boasting over 26 years of exceptional experience in the real estate industry, MFMH and CDMH specializes in the efficient purchase and sale of real estate regardless of market conditions. Their unparalleled service and reputation have allowed MFMH and CDMH to develop strategic partnerships with investors, title companies, banks, mortgage professionals and contractors throughout the Detroit region. This creation of a one-stop shop for the needs of new homeowners allows MFMH and CDMH to once again surpass the competition and deliver amazing results.

With their recent partnership MFMH and CDMH aim to transform the metro Detroit area one new homeowner at a time. As Michigan’s #1 destination for wholesale properties, MFMH and CDMH assists new home buyers in navigating the purchasing and investment process. By uniting prospective first time home buyers with means once only available to high-powered hedge funds and investment firms, MFMH and CDMH are improving the opportunities afforded to the average consumer.

To date, the professional staff of MFMH and CDMH has trained hundreds of investors in the practices of intelligent and lucrative real estate property investment in the Detroit area.

As real estate professionals and investors, MFMH and CDMH recognize that investment in real estate goes beyond finance…it involves community investment. In conjunction with their goal of transforming the Detroit metro area, MFMH and CDMH have pledged to donate a portion of all sales to the local Detroit division of Volunteer’s of America’s Back Pack Program and Adopt-a-Family Program. For more information about this VOA program, please visit www.VOA.org.

MFMH and CDMH are cooperatively run by Christopher J. Shaw and Darrick H. Scruggs. With more than two decades in the real estate industry, Shaw and Scruggs have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.

To learn more about first time home buying with My First Michigan Home and Cheap Metro Detroit Homes, please visit www.MyFirstMichiganHome.com and www.CheapMetroDetroitHomes.com.

Press Inquiries Contact:

Christopher J. Shaw
My First Michigan Home
16250 Northland Drive Suite 242
Southfield, MI 48075
Telephone: (248) 569-1486
Fax: (248) 569-7637
www.MyFirstMichiganHome.com

Don't let the bad breaks get you down

When on the road to your success you must develop what's called a high "resolve" so that the passion for achieving your goals is not dimished because of unexpected setbacks, which are only temporary.

Always remember that: no matter how many roadblocks you may encounter on your jorney, that success is right around the corner.

On that note do make it a great week.

The Cart before the Horse

As i tell all my clients don't put the cart before the horse. In other word don't go shopping until you have the cash or you've secured financing. A lot of people do this which can sometimes backfire and lead to frustration and disappointment.

First of all, say you start looking and find a house that you really like. It fulfills all of your needs and now you set out to secure financing but in the meantime the house of your dreams is being shown to other potential buyers who just happen to already be pre-approved.

That particular property just happens to be someone's dream home and they are already pre-approved. A pre-approval letter from a lender carries a lot of weight, because it shows that the buyers are ready, willing, and most of all able.

What happens is while you're trying to secure financing the pre-approved buyer has secured your dream home. So with that said, it is a good practice that you come prepared with your financing in place. It will make you more effective and more confident during your buying process.

If you need to acquire financing, find out where you stand before you buy please feel free to contact My First Michigan Home we special in the First Time Buyer process.

Christopher Shaw
CEO
My First Michigan Home
16250 Northland Drive
Ste 242
Southfield, MI 48075

www.Myfirstmichiganhome.com

248-569-1486
248-569-1487