The Honorable Governor Arnold Schwareneggar has come to the homebuyer's rescue. He signed a bill that will give a 5% measured credit up to $10,000 payable in three annual payments. Of course you have to repay it if you sell your home prematurely. On a $250,000 home that means a warrant from the state of California at $3,333 /year for three years. Not quite as sexy as the $8000 version but it helps pay for that furniture you will need.
THE DETAILS:
The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.
There has been talk too of re -renewing the federal version. Although nothing is carved in stone,I have heard that it is caught up in the Senate right now...and its reicarnation will probably be a lesser credit. Maybe Obama can sneak that into his health care bill like he did the abortion thing! Kinda like burying in your short sale agreement that the lender will consider the seller's debt paid in full.
I always said real estate was stimulating and I am sure it will be even more so after April 1 when HAMP kicks in and lenders really have to start working with realtors and not be so mysterious. I already am seeing a surge in BPO orders from clearinghouses that would indicate a storm is coming. They even send stuff at 3 am or 9 pm at night...they are still hard to get however. Realtors need to remember too that although we like dollar signs, the needs of our CLIENT COME FIRST! If they can manage to keep their home, then it is a good thing!
Be a servant ...to quote Cory Boatwright.
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