My New Blog

 Texas no longer allows owner-financing under last year’s Texas House Bill 10 — the “SAFE” Act — unless the seller has a license. SAFE (which stands for “Secure and Fair Enforcement for Mortgage Licensing Act”) was passed in order to comply with a federal law of the same name. The full Texas bill can be found by searching the Internet for “Texas Finance Code, Chapter 180.”

Your previous sales under owner financing agreements were most likely legal under the “de minimus exception” in the Texas Finance Code. That exception allowed Texans to owner finance up to five transactions per year.

Under the current code, owner-financers must have a Residential Mortgage Loan Originator license from the Texas Savings and Mortgage Lending Department. There are very few exceptions to this rule, but they might be useful to you.

First, the new SAFE rules do not apply to mortgages made between “immediate family members," including a spouse, child, sibling, parent, grandparent, or grandchild (by adoption, marriage or natural birth).

Second, the rules do not apply to sale of home in which the seller resides. This means that your primary homestead property may be owner-financed without a license — even to a non-family buyer.

Clearly, this new law will drastically affect the livelihoods of many house flippers. The normal first question I am asked after explaining the legalities is, “What if I do it anyway?” The answer to that question is currently unclear, but it is clear that a violation is a misdemeanor, and can lead to a revision or revocation of the contract, a $25,000 administrative fine, restitution to the would-be buyer, and a restraining order against the seller to keep them from financing. 

The only legal way around this law is to use a third-party mortgage originator, or to obtain a license. To acquire a license, a loan originator must pass the SAFE Mortgage Loan Originator Test (which covers both state and federal law), complete a minimum of 20 hours of pre-licensure education, pass a fingerprint background check and criminal history records check, and prove themselves credit-worthy via their credit reports.



Source: Daniel Ray, Greenville, Texas attorney licensed in all Texas courts. His firm, Scott, Money & Ray, PLLC, represents the City of Greenville, Hunt County, and many other public and private North Texas entities.His practice emphasis is civil litigation, wills and trusts, and real estate.

*This article is intended for entertainment and educational purposes as well as to give the reader general information and a general understanding of the law, not to provide specific legal advice. By reading this article you agree that you understand that there is no attorney-client relationship between you and the author or publisher. The article should not be used as a substitute for competent legal advice from a licensed professional attorney in your area.

New rules for first-time homebuyers

First-time buyers who purchase a home between Nov. 7, 2009, and April 30, 2010, may be entitled to a federal tax credit worth 10% of the sale price or $8,000, whichever is lesser. Income restrictions apply. The tax credit for joint filers begins to phase out at a modified adjusted gross income of $225,000 ($125,000 for individual taxpayers). The credit disappears entirely at $245,000 for joint filers ($145,000 for individuals).

While first-time buyers must enter into a binding contract to purchase a principal residence by April 30, the closing can take place as late as Sept. 30, 2010. The home can’t cost more than $800,000.

Qualifying purchases in 2009 can be claimed on your 2008 or 2009 return. File an amended return for 2008. Purchases in 2010 can be claimed on your 2009 or 2010 return. To get the credit for the 2009 tax year on a purchase that closes after April 15, 2010, either request an automatic filing extension or file an amended 2009 return.

The first-time homebuyer tax credit is “refundable,” according to Ken Burstiner, a CPA at Weiser LLP in New York City. That means you can earn it even if you owe no federal tax, the credit exceeds your total tax liability, or you have little income. Claim the credit on IRS Form 5405, which should take less than an hour to fill out. It’s a good idea to consult a tax adviser. H&R Block’s average fee to prepare a tax return is $187.

Old rules for first-time homebuyers

First-timers who bought a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for a federal tax credit worth up to $8,000. A tax credit reduces your tax bill or increases your refund dollar for dollar. In general, whether under the old rules or the new rules, you’ll be required to repay the full value of the credit to the IRS if you don’t maintain the home as your principal residence for three years.

First-time buyers subject to the old rules face tighter income limit. The phase-out kicks in for joint filers when modified adjusted gross income hits $150,000 ($75,000 for individual taxpayers). It disappears entirely at $170,000 for joint filers ($95,000 for individuals). Married filing separately taxpayers can claim only up to half of the $8,000 credit.

First-time buyers in 2008 were subject to a different tax-credit program. Homes purchased after April 8, 2008, and before Jan. 1, 2009, were eligible for a credit worth the lesser of $7,500 or 10% of the home’s purchase price. Income limits and phase-out ranges were the same as those for first-time buyers between Jan. 1, 2009, and Nov. 6, 2009.

The biggest difference between 2008 and 2009 was that the tax credit in 2008 really functioned as an interest-free loan that must be paid back over 15 years. The first of the annual installments should come due on the 2010 tax return filed in 2011. With few exceptions, if your home ceases to be your main residence during those 15 years, you have to pay back the outstanding amount with the subsequent tax return.

Tax credit for longtime homeowners

If you’re a longtime homeowner—meaning you’ve lived at your principal residence for five consecutive years out of the last eight—you may qualify for a homebuyer tax credit worth up to $6,500. You must purchase a new principal residence between Nov. 7, 2009, and April 30, 2010. Like the first-time homebuyer tax credit that applies to these dates, you can settle as late as Sept. 30, 2010, as long as you have a binding contract by April 30.

The same $800,000 cap on the purchase price applies to longtime homeowners, as do the same income restrictions. The credit begins to phase out for joint filers at modified adjusted gross income of $225,000 ($125,000 for individuals), and disappears at $245,000 ($145,000 for individuals). Married couples filing separately are eligible for up to half of the $6,500 credit.

For both first-time and longtime buyers who want to claim the tax credit for a purchase made after Nov. 6, 2009, the IRS requires proof. Attach a copy of the settlement statement you received at closing to your return. You must be at least 18 years old.

Other restrictions and provisions

As long as they serve as principal residences, single-family homes, townhouses, co-ops, and condos are all eligible for a tax credit. Mobile homes may be eligible for the credit, even if the land itself is leased. Owning a vacation home or rental property doesn’t disqualify you as a first-time homebuyer, but you do have to make it clear such properties were never your principal residence.

You won’t be eligible for the tax credit if you’re buying from a close relative. For example, if your mother goes into a nursing home and you buy her house from her, you can’t claim the credit. Close relatives include parents, grandparents, children, grandchildren, your spouse, and your spouse’s family.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Richard J. Koreto, a freelance writer, is the former editor of several professional financial magazines and the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

La Temporada de protestar Impuestos está aquí otra vez --- Estamos dando Análisis de Mercado Comparativos (CMA) ACTUALIZADOS & GRATIS para los propietarios que busquen
orientación del valor de sus viviendas o las pruebas a utilizar en una protesta de
impuestos. Solamente llena el siguente formulario:

http://propiedadesentexas.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

Tax Protest Season is Here Again --- We are giving CURRENT & FREE Comaprative Market Analysis (CMA) for property owners seeking value guidance, or evidence to use in a
property tax protest. Just follow this link:

http://propiedadesentexas.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

NO DEJE QUE SU CASA sea ejecutada en FORECLOSURE! Si usted debe más por su casa de lo que vale en el mercado actual, usted tiene opciones. No espere hasta que sea demasiado
tarde. Si su objetivo es vender su casa sin gastos de bolsillo y evitar asi perder su casa, un Short Sale podría ser la solución adecuada para usted. Como Agente Certificado en Recursos para
Short Sales y Foreclosures (SFR), puedo ayudarle.

DON'T LET YOUR HOME FORECLOSE! If you owe more on your home than it's worth in today's market, you have options. Don't wait until it's too late. If your goal is to sell your home with no out of pocket expenses and avoid having your home foreclose, a short sale might be right for you. As a Certified Short Sale and Foreclosure Resource Agent, I can help.

The U.S. government's home buyer tax credit was extended to April 30, 2010 and it will not be extended again.

This tax credit can benefit first-time home buyers up to $8,000 and current homeowners up to $6,500, provided they meet certain guidelines. And because this program is a tax credit – it does not have to be repaid.

There has never been a better time to take advantage of this tax credit because hundreds of homes are priced below market value.

El crédito fiscal para compradores de casa por primera vez (últimos 3 años) del gobierno de EE.UU. Se amplió al 30 de abril de 2010 y no se ampliará de nuevo.

Este crédito de impuestos puede beneficiar a los compradores de casa por primera vez con hasta $8,000 y los propietarios actuales con hasta $6,500 dólares, siempre que cumplan ciertas condiciones. Y como este programa es un crédito fiscal - no lo tiene que devolver.

Nunca ha habido un mejor momento para tomar ventaja de este crédito fiscal, porque cientos de casas tienen un precio inferior al valor de mercado.

El área de Austin-Round Rock empató el primer lugar en una lista de los metros grandes donde la recesión está disminuyendo.

El Centro de Texas empató con Washington DC según la publicación de Forbes.com que compila el crecimiento del empleo y la mejora de la industria de bienes raíces, entre otros indicadores. Washington tiene una de las tasas de desempleo más bajas en la nación, 6,2 por ciento, y la ciudad produce más bienes y servicios que en 2008.

Austin también ha mantenido las tasas de desempleo relativamente bajas, aunque el número aumentó a un 7,6 por ciento el mes pasado de un 7 por ciento, de acuerdo con la Comisión Laboral de Texas. En todo el estado, la tasa se mantuvo sin cambios en 8,2 por ciento desde diciembre a enero, en comparación con el 9,7 por ciento a nivel nacional.

Austin y Washington DC, también se benefician de su alta generación de empleo del gobierno, según la revista Forbes. El número de puestos de trabajo el centro de Texas aumentó apenas por debajo de 1 por ciento entre 2007 y 2009, más que cualquier otra ciudad incluida en la investigación.

Dallas quedó en segundo lugar en el ranking detrás de Austin. El número de puestos de trabajo que se espera un aumento de más de 7 por ciento en los próximos tres años. San Antonio y Houston también alcanzarón la lista de Top 10.

Las proyecciones de crecimiento del empleo se basan en la información de Moody's. La lista también se considera la venta media de los precios y cambios de casa Metropolitano Producto Interno Bruto.

Austin Business Journal

The Austin-Round Rock area tied for first on a list of large metros where the recession is easing.

Central Texas tied Washington D.C. in the Forbes.com ranking that compiles job growth and real estate industry improvement, among other indicators. Washington has one of the lowest unemployment rates in the nation, 6.2 percent, and the city produced more goods and services than another other in 2008.

Austin has also maintained relatively lower jobless rates, though the number increased to 7.6 percent last month from 7 percent, according to the Texas Workforce Commission. Statewide, the rate was unchanged at 8.2 percent from December to January, compared to 9.7 percent nationally.

Austin and Washington D.C. also benefit from their high government job generation, according to Forbes. The number of Central Texas jobs increased just shy of 1 percent between 2007 and 2009, more than any other city included in the research.

Dallas came in second on the ranking behind Austin. The number of jobs there are expected to increase more than 7 percent in the next three years. San Antonio and Houston also made the top 10 list.

Job growth projections were based on information from Moody's. The listing also considered median home sale price changes and Metropolitan Gross Domestic Product.

Austin Business Journal

LAS VENTAJAS FISCALES DE SER PROPIETARIO DE SU CASA.

Usted ha escuchado una y otra vez que comprar una casa es el mejor incentivo fiscal que existe.
Quizás aun le han llamado bobo por alquilar. Después de todo, el pago de $ 1,200 al mes por su hipoteca es realmente el equivalente de pagar $ 900 al mes en alquiler. Pero, ¿cómo funciona eso exactamente?
Este es el asunto: el interés de hipoteca (incluyendo los puntos) y los impuestos inmobiliarios son deducibles de impuestos. Eso no suena muy atractivo, pero hace la diferencia. Dado que la mayoría de lo que usted paga por su hipoteca en los primeros años es de interés, en un pago hipotecario de $ 1.200 Puede deducir acerca de 1.080 dólares al mes. Que reduce sus ingresos gravables por cerca de $ 13.000 al año. Si usted está en el reglon de 28% de impuestos, la deducción asciende a unos 300 dólares al mes.
Para ver los beneficios, usted puede esperar un pago grande después de presentar su declaración de impuestos de ingresos, o ajustar lo que se retiene de su cheque de pago cada mes. Solicitar descuentos adicionales en su forma W-4 y su salario saltará inmediatamente. Usted tendrá que hacer la hoja de cálculo en la parte posterior de la forma W-4 para averiguar cuántos derechos de emisión adicionales usted puede reclamar. Pero con el ejemplo anterior, usted podría tomar dos o tres más.

THE TAX ADVANTAGES OF BUYING A HOME.

You've heard again and again how buying a home is the best tax break around.
Maybe you've even been called a chump for renting. After all, paying $1,200 a month for your mortgage is really the equivalent of paying $900 a month in rent. But how does that work exactly? Here's the deal: Mortgage interest (including points) and real estate taxes are tax deductible. That doesn't sound very sexy, but it adds up. Since most of what you pay for your mortgage in the first years is interest, on a $1,200 mortgage payment you get to deduct about $1,080 a month. That reduces your taxable income by about $13,000 a year. If you're in the 28% tax bracket, that deduction is worth about $300 a month.
To see the benefit, you can either wait for a big payout after you file your income-tax return, or adjust what is withheld from your paycheck each month. Claim additional allowances on your W-4 form and your paycheck will jump immediately. You'll have to do the worksheet on the back of the W-4 form to figure out how many additional allowances you can claim. But using the above example, you could take two or three more.