HOW GOVERNMENT PROGRAMS CAN HELP YOU
Recently the federal and state governments have introduced serveral programs to help current problems at the heart of the real estate crises. These programs include Making Home Affordable, Home Affordable Refinance Program, Federal and State Home Buyer Tax Credits, and the Home Affordable Foreclosure Alternatives Program (HAFA).
The Making Home Affordable is a plan to stabilize the housing parket and help 7 to 9 million Americans reduce their monthly mortgage paymets to affordable levels.
The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments and prevent foreclosures.
The First Time Home Buyer Tax Credit, part of The Worker, Homeownership, and Business Assistance Act of 2009, has extended the tax credit of up to $8,000 for qualified first time home buyers purchasing a prinicpal residence.
The Tax Credit for Repeat Buyers, part of The Worker, Homeownership, and Business Assistance Act of 2009, has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence.
The California Home Buyer Tax Credit, Assembly Bill 183, will provide eligible taxpayers who purchase a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchase a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years.
The Home Affordable Foreclosure Alternatives Program (HAFA)streamlines the Short Sale or Deed in Lieu of Foreclosure options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $3,000 to help with relocation costs. The program begins on April 5, 2010.
