Please allow 20-30 seconds for video to load
Houston Real Estate for Sale offered by Irena Gorski 281-610-4524 from Trend Setter Realty. Unique and huge house for sale in desirable neighborhood of Concord Bridge in Houston. Located within short driving distance to Houston Energy Corridor, Hwy I-10, Hwy 6, Hwy 290, Beltway 8.
This 3098 SF house features wood floors throughout, 5 Bedrooms, 2.5 Bathrooms, 2 Car Garage, Formal Living Room, Formal Dining Room with mirrored wall and wet bar, Large Family Room with gas log Fireplace surrounded by marble tiles, extra large Game Room, huge custom added Sun Room overlooking Swimming Pool with Waterfall.
4 Bedrooms and Game Room are located on the second floor. 1 Bedroom (not Master Bedroom) is located on the first floor and can be used also as an office or study room. Utility room is conveniently located between this bedroom and kitchen. Wood Floors throughout the house make this house easy to maintain. Two bedrooms have laminate floor. Ceramic tile floors are installed in all bathrooms, kitchen, utility room and Sun Room. House was recently painted inside. Kitchen has island and beautiful Silestone countertops with pieces of quartz. Large Master Bedroom has sitting area and Balcony with view to the backyard and swimming pool. Master Bathroom has double vanities, separate shower and separate bath tub with jets. Cool off during hot Houston summer days in sparkling swimming pool with waterfall and keep your lawn green with automatic Sprinkler. House has 30 years roof installed in year 2009.
Open House 24/7 in Houston Real Estate Video http://IAmOpenHouse.com.
For more information please call Houston real estate listing agent Irena Gorski 281-610-4524 , http://IrenaGorski.com .
To get information about this house on your cell phone, Text: 2129 to: 79564 .
Showing posts with label Houston homes. Show all posts
Showing posts with label Houston homes. Show all posts
Wednesday, August 17, 2011
Tuesday, July 26, 2011
Mortgage Interest Tax Deduction Under Attack
Homeowners, beware! As part of the budget deal, your mortgage interest may no longer be a deduction for you to take on your 2011 tax form.
Congress and the White House are discussing putting a cap on the mortgage interest deduction (MID) and eliminating it altogether for home equity loans and second homes. A similar proposal was made last year, but the housing industry, Realtors and lenders opposed it.
The current cap for mortgage debt is $1 million, and the interest on home equity loans and second homes is also deductible. Housing industry leaders fear that lowering the cap and cutting out the second home and home equity loans will hurt the slow market even more.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Congress and the White House are discussing putting a cap on the mortgage interest deduction (MID) and eliminating it altogether for home equity loans and second homes. A similar proposal was made last year, but the housing industry, Realtors and lenders opposed it.
The current cap for mortgage debt is $1 million, and the interest on home equity loans and second homes is also deductible. Housing industry leaders fear that lowering the cap and cutting out the second home and home equity loans will hurt the slow market even more.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Friday, April 15, 2011
Open House 24/7 in Houston Real Estate Video - 4830 Harbor Glen Ln., Houston, TX 77084
Great house for sale in Lakes of Pine Forest in Houston, Texas. Feel free to walk through this house house 24/7 in Houston Real Estate Video Tour. Video by IAmOpenHouse
Please allow 10-15 seconds for video to loadTo get more information about this house please contact Irena Gorski 281-610-4524.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Please allow 10-15 seconds for video to loadTo get more information about this house please contact Irena Gorski 281-610-4524.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Thursday, September 02, 2010
Monday, August 23, 2010
BP emergency funds for real estate professionals lost income along Gulf Coast
Breaking news ...
Per Texasrealestate.com
Kenneth Feinberg, administrator of the BP Gulf Coast Claims Fund, is providing an allocation from the fund for real estate brokers and agents in the region, including Texas. Along with other local businesses, Gulf Coast real estate activity has been affected since the Deepwater Horizon gusher.
These emergency funds are for real estate professionals' loss of income as a result of the oil spill. To qualify, applicants' lost business must be in close proximity to the coastline.
“The economic impacts of natural disasters like Hurricanes Rita and Ike, while certainly unwelcome, are relatively easy to determine. But the long-term impact of the BP oil spill to Texas has yet to be determined,” says Bill Jones, chairman of the Texas Association of REALTORS®. “We do know there are local real estate professionals who’ve experienced financial losses due to transactions that were terminated because of the oil spill. The decline in tourism and interest in real property sales and leases due to the oil spill has affected some of our real estate businesses in southeast Texas, and we’re grateful to Mr. Feinberg for all he’s doing to help.”
Each state association of REALTORS® of the affected Gulf Coast states will receive funds as determined by a standard, widely accepted, loss-estimation methodology. The states, which include Texas, Louisiana, Mississippi, Alabama, and Florida, have developed timely and objective processes for receiving and processing claims and determining loss payments. A major part of this work will be conducted by a third-party national claims adjustment firm, Indiana-based NCA.
“Texas REALTORS® build and, whenever necessary, re-build communities. This process will help us continue to do that along our economically battered Gulf Coast,” Jones says. “This historic agreement between the real estate industry and the BP Fund is a model for public/private partnerships. And it will help restore economic vitality to the region and ensure that a unique culture and way of life continues into the future.
Texas Real Estate Licensee Emergency Claim Form (Word document)
Per Texasrealestate.com
Kenneth Feinberg, administrator of the BP Gulf Coast Claims Fund, is providing an allocation from the fund for real estate brokers and agents in the region, including Texas. Along with other local businesses, Gulf Coast real estate activity has been affected since the Deepwater Horizon gusher.
These emergency funds are for real estate professionals' loss of income as a result of the oil spill. To qualify, applicants' lost business must be in close proximity to the coastline.
“The economic impacts of natural disasters like Hurricanes Rita and Ike, while certainly unwelcome, are relatively easy to determine. But the long-term impact of the BP oil spill to Texas has yet to be determined,” says Bill Jones, chairman of the Texas Association of REALTORS®. “We do know there are local real estate professionals who’ve experienced financial losses due to transactions that were terminated because of the oil spill. The decline in tourism and interest in real property sales and leases due to the oil spill has affected some of our real estate businesses in southeast Texas, and we’re grateful to Mr. Feinberg for all he’s doing to help.”
Each state association of REALTORS® of the affected Gulf Coast states will receive funds as determined by a standard, widely accepted, loss-estimation methodology. The states, which include Texas, Louisiana, Mississippi, Alabama, and Florida, have developed timely and objective processes for receiving and processing claims and determining loss payments. A major part of this work will be conducted by a third-party national claims adjustment firm, Indiana-based NCA.
“Texas REALTORS® build and, whenever necessary, re-build communities. This process will help us continue to do that along our economically battered Gulf Coast,” Jones says. “This historic agreement between the real estate industry and the BP Fund is a model for public/private partnerships. And it will help restore economic vitality to the region and ensure that a unique culture and way of life continues into the future.
Texas Real Estate Licensee Emergency Claim Form (Word document)
Sunday, March 07, 2010
Tips for the homebuyer tax credit
The new-and-improved federal homebuyer tax credit can benefit not only first-time homebuyers but also homeowners who want to sell their current home and buy a new one.
The credit is reasonably straightforward, but there are some tips for those who want to take advantage of it. Here's what you should know:
1. Deadline: April 30, 2010
The most important tip is to be aware of the deadline. Buyers who want to use the tax credit must have their new home under contract (i.e., in escrow) by April 30, 2010, and must close the transaction within 60 days after that date.
That deadline is much sooner than it may seem: Many buyers take months to locate a house, and closing a transaction typically takes 45 to 60 days.
The short deadline may create even more of a crunch for homeowners who need to sell their current home and purchase a new one, Pettijohn says. Sellers need to be realistic about the value of their current home and put their home on the market as soon as possible, so they'll feel confident about buying their next home.
Buyers who get behind the curveball shouldn't count on another extension to keep them in the game since Sen. Johnny Isakson, R-Ga., a former Realtor and the principal supporter of the legislation that extended and expanded the credit, has said in a statement that the tax credit won't be extended again.
2. Credit up to $8,000 or $6,500
Buyers also need to understand that the tax credit is equal to 10 percent of the sale price of the home, which could be less than the maximum of up to $8,000 for first-time buyers and up to $6,500 for repeat homeowners.
For example, if a first-time buyer purchased a small condominum that cost just $70,000, the tax credit would be $7,000. And by the way, if the home costs more than $800,000, the credit now drops to zero.
3. Get good advice
Homebuyers who want to take advantage of the tax credit should consult the right people for help, including:
A tax preparer, who can help them ensure they meet all the requirements to use the credit.
A mortgage lender, who can help them choose a loan program that will fit their needs.
A Realtor, who can help them locate a home they can afford and want to purchase.
Buyers should be aware that not all loans allow the borrower to finance closing costs or accept a contribution from the seller toward those costs, Bernard says. Many loan programs do allow those options, but that "certainly is not a blanket opportunity," she says. Buyers whose savings won't stretch to cover all the out-of-pocket costs to buy a home should discuss that constraint with their loan officer or mortgage broker.
4. Beware of tax fraud
According to Patti Ketcham, broker and owner of Ketcham Realty Group in Tallahassee, Fla., homebuyers should educate themselves about the tax credit and learn the lingo.
"It is critical that buyers educate themselves and that they not fall for the slick smoke and mirrors," she says. "Anytime you have found money, it brings out all the rats."
Three Web sites that may be helpful are:
National Association of Realtors
National Association of Home Builders
IRS
Buyers and sellers should be wary of any advice that sounds suspicious or overly complicated, Ketcham says. For instance, buyers who are told to conceal any information from their lender should "get away" from whoever offered that advice, she says.
One final tip: The IRS has found such a high incidence of fraud and creative tax accounting associated with the homebuyer tax credit that taxpayers who take the credit will now be required to attach a copy of the settlement statement to their federal tax return as proof of purchase. Buyers should keep their paperwork handy.
From www.bankrate.com
Irena Gorski specializes in selling real estate in West Houston,Sugar Land, Katy, Missouri City, Richmond
Follow Irena on Twitter: http://twitter.com/IrenaGorski
The credit is reasonably straightforward, but there are some tips for those who want to take advantage of it. Here's what you should know:
1. Deadline: April 30, 2010
The most important tip is to be aware of the deadline. Buyers who want to use the tax credit must have their new home under contract (i.e., in escrow) by April 30, 2010, and must close the transaction within 60 days after that date.
That deadline is much sooner than it may seem: Many buyers take months to locate a house, and closing a transaction typically takes 45 to 60 days.
The short deadline may create even more of a crunch for homeowners who need to sell their current home and purchase a new one, Pettijohn says. Sellers need to be realistic about the value of their current home and put their home on the market as soon as possible, so they'll feel confident about buying their next home.
Buyers who get behind the curveball shouldn't count on another extension to keep them in the game since Sen. Johnny Isakson, R-Ga., a former Realtor and the principal supporter of the legislation that extended and expanded the credit, has said in a statement that the tax credit won't be extended again.
2. Credit up to $8,000 or $6,500
Buyers also need to understand that the tax credit is equal to 10 percent of the sale price of the home, which could be less than the maximum of up to $8,000 for first-time buyers and up to $6,500 for repeat homeowners.
For example, if a first-time buyer purchased a small condominum that cost just $70,000, the tax credit would be $7,000. And by the way, if the home costs more than $800,000, the credit now drops to zero.
3. Get good advice
Homebuyers who want to take advantage of the tax credit should consult the right people for help, including:
A tax preparer, who can help them ensure they meet all the requirements to use the credit.
A mortgage lender, who can help them choose a loan program that will fit their needs.
A Realtor, who can help them locate a home they can afford and want to purchase.
Buyers should be aware that not all loans allow the borrower to finance closing costs or accept a contribution from the seller toward those costs, Bernard says. Many loan programs do allow those options, but that "certainly is not a blanket opportunity," she says. Buyers whose savings won't stretch to cover all the out-of-pocket costs to buy a home should discuss that constraint with their loan officer or mortgage broker.
4. Beware of tax fraud
According to Patti Ketcham, broker and owner of Ketcham Realty Group in Tallahassee, Fla., homebuyers should educate themselves about the tax credit and learn the lingo.
"It is critical that buyers educate themselves and that they not fall for the slick smoke and mirrors," she says. "Anytime you have found money, it brings out all the rats."
Three Web sites that may be helpful are:
National Association of Realtors
National Association of Home Builders
IRS
Buyers and sellers should be wary of any advice that sounds suspicious or overly complicated, Ketcham says. For instance, buyers who are told to conceal any information from their lender should "get away" from whoever offered that advice, she says.
One final tip: The IRS has found such a high incidence of fraud and creative tax accounting associated with the homebuyer tax credit that taxpayers who take the credit will now be required to attach a copy of the settlement statement to their federal tax return as proof of purchase. Buyers should keep their paperwork handy.
From www.bankrate.com
Irena Gorski specializes in selling real estate in West Houston,Sugar Land, Katy, Missouri City, Richmond
Follow Irena on Twitter: http://twitter.com/IrenaGorski
Sunday, February 14, 2010
New Improved Homebuyer Tax Credit
How to Get the First-Time Home Buyer Tax Credit
You've decided to purchase a home and take advantage of the Home Buyer Tax Credit. Here's what you have to do to get your benefit:
•Close on your home purchase by July 1, 2010
•Ensure that you are a qualified first-time buyer under IRS guidelines
•To prevent fraud, you are required to provide documentation proving that you purchased a home
•Be at least 18 yeas old to claim the credit
•Fill out Form 5405 to determine the amount of your available credit
If you would like to purchase a house in Greater Houston Area and take advantage
of Home Buyer Tax Credit please contact Houston Realtor® Irena Gorski 281-610-4524, http:IrenaGorski.com
Thursday, December 10, 2009
Wednesday, December 02, 2009
10 Common Selling Mistakes while selling your house
Mistake #1 -- Placing the Wrong Price on Your Property
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.
Mistake #8 - Improperly Filling out Sellers Disclosure Forms
Not properly disclosing all known material facts about the house in the Sellers Disclosure,
leads to significant delays in the sale process and to risk of lawsuits in the future, even
after the closing.
Mistake #9 - Limiting the Marketing and Advertising of the Property
There are two obvious marketing tools that nearly every agent uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house.
Your realtor should employ a wide variety of marketing techniques. He should be able to tell you, how he is promoting and marketing himself and his business, and how he is going to MARKET YOUR HOUSE. Ask him to show you samples of his, and his company, marketing tools / copies of website pages, brochures, mail outs, information about mass media advertising, number and quality of pictures he is placing on MLS etc./ Chances are, the way real estate agent is marketing himself and other houses, is the very same way he will market your house. Keep in mind, the bigger variety and the better quality of marketing tools and techniques, the bigger are chances to have your house SOLD. This is essential in the process of selling your house in today‘s very COMPETITIVE real estate market.
Mistake #10 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor, that is best for you. Sellers often are trying to save the
money, and are choosing the agent, who is willing to accept lower commission. Lower commission usually means much less, or no money for marketing your house. It also leads to the following question: will the realtor, who is not able to negotiate his own commission, be able to negotiate the best price for your house? Overpriced at the beginning, without right marketing tools and techniques, houses are sitting on the market for extremely long time. That means in fact, that instead of saving money with agreement for lower commission, sellers are loosing incomparably bigger amounts of money. When house is on the market for extended period of time, they have to do monthly mortgage payments, taxes, property insurance etc., and when it is finally sold, usually for less than original listing price, sellers are never able to recover the money they lost in this process.
Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.
Mistake #8 - Improperly Filling out Sellers Disclosure Forms
Not properly disclosing all known material facts about the house in the Sellers Disclosure,
leads to significant delays in the sale process and to risk of lawsuits in the future, even
after the closing.
Mistake #9 - Limiting the Marketing and Advertising of the Property
There are two obvious marketing tools that nearly every agent uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house.
Your realtor should employ a wide variety of marketing techniques. He should be able to tell you, how he is promoting and marketing himself and his business, and how he is going to MARKET YOUR HOUSE. Ask him to show you samples of his, and his company, marketing tools / copies of website pages, brochures, mail outs, information about mass media advertising, number and quality of pictures he is placing on MLS etc./ Chances are, the way real estate agent is marketing himself and other houses, is the very same way he will market your house. Keep in mind, the bigger variety and the better quality of marketing tools and techniques, the bigger are chances to have your house SOLD. This is essential in the process of selling your house in today‘s very COMPETITIVE real estate market.
Mistake #10 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor, that is best for you. Sellers often are trying to save the
money, and are choosing the agent, who is willing to accept lower commission. Lower commission usually means much less, or no money for marketing your house. It also leads to the following question: will the realtor, who is not able to negotiate his own commission, be able to negotiate the best price for your house? Overpriced at the beginning, without right marketing tools and techniques, houses are sitting on the market for extremely long time. That means in fact, that instead of saving money with agreement for lower commission, sellers are loosing incomparably bigger amounts of money. When house is on the market for extended period of time, they have to do monthly mortgage payments, taxes, property insurance etc., and when it is finally sold, usually for less than original listing price, sellers are never able to recover the money they lost in this process.
Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.
Friday, November 13, 2009
Fraudulent 'Mortgage Rescue' Firm in Texas Faces Penalties
They posed as mortgage brokers, claiming they could help distressed homeowners who were behind on their mortgage payments. These scam artists collected fees but never followed through with their promises, and Texas Attorney General Greg Abbott is now taking legal action against them.
For these “services” victims were required to pay at least $1,000 in advance fees and were told to have no contact with their original mortgage servicers. They were also told to refrain from making future payments to their current mortgage servicer.
After collecting fees, the Baileys neglected to provide measurable foreclosure relief. No negotiations were made with homeowners original mortgage servicers, causing many to lose their homes to foreclosure action. In late October, the Baileys received a cease-and-desist order from the Department of Savings and Mortgage Lending, but the men continued to unlawfully operate their businesses.
Judge James M. Staton, from the 134th District of Dallas County, granted an agreed temporary injunction barring the Baileys from operating their businesses and required the defendants to reimburse all fees to the victims of their fraud or place these monies in a trust pending final judgment.
In addition to this restitution, the attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act and is requiring the payment of all attorneys’ fees.
The defendants also allegedly violated other provisions of the Texas Business and Commerce Code by failing to provide homeowners with a required option to cancel the in-residence solicitation and violated the Texas Finance Code by failing to obtain a license.
From www.dsnews.com by Brittany Dunn
Call Irena Gorski for your Houston real estate needs 281-610-4524
You can search Over 40,000 Houston Real Estate Listings for Sale right now
For these “services” victims were required to pay at least $1,000 in advance fees and were told to have no contact with their original mortgage servicers. They were also told to refrain from making future payments to their current mortgage servicer.
After collecting fees, the Baileys neglected to provide measurable foreclosure relief. No negotiations were made with homeowners original mortgage servicers, causing many to lose their homes to foreclosure action. In late October, the Baileys received a cease-and-desist order from the Department of Savings and Mortgage Lending, but the men continued to unlawfully operate their businesses.
Judge James M. Staton, from the 134th District of Dallas County, granted an agreed temporary injunction barring the Baileys from operating their businesses and required the defendants to reimburse all fees to the victims of their fraud or place these monies in a trust pending final judgment.
In addition to this restitution, the attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act and is requiring the payment of all attorneys’ fees.
The defendants also allegedly violated other provisions of the Texas Business and Commerce Code by failing to provide homeowners with a required option to cancel the in-residence solicitation and violated the Texas Finance Code by failing to obtain a license.
From www.dsnews.com by Brittany Dunn
Call Irena Gorski for your Houston real estate needs 281-610-4524
You can search Over 40,000 Houston Real Estate Listings for Sale right now
Wednesday, November 11, 2009
You may qualify for $8,000 First-time Home Buyer Tax Credit
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 principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
•The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
•The tax credit does not have to be repaid.
•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
•The tax credit applies only to homes priced at $800,000 or less.
•The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
•For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
•For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
1.Who is eligible to claim the $8,000 tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.
Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.
2.What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, IRS Notice 2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3.How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4.Are there any income limits for claiming the tax credit?
Yes. For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5.The income limits for claiming the tax credit were raised when the tax credit was extended. Are the higher limits retroactive?
No. The new income limits are only applicable to purchases occurring after November 6, 2009.
The income limits for sales occuring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
6.What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.
7.If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
8.Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
9.How is this home buyer tax credit different from the tax credit that Congress enacted in early 2009?
The tax credit’s income limits were increased, the documentation requirements were tightened, and the program's deadlines were extended.
10.How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
11.What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
12.I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
13.Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
14.Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with an MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15.I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.
16.I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17.Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
18.I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
19.Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
20.HUD is now allowing "monetization" of the tax credit. What does that mean?
It means that HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.
Under HUD’s guidelines, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans of up to $8,000. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement. In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.
More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
21.If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
22.For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
Based on http://www.federalhousingtaxcredit.com
You can search Over 40,000 Houston Real Estate Listings for Sale right now
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
•The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
•The tax credit does not have to be repaid.
•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
•The tax credit applies only to homes priced at $800,000 or less.
•The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
•For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
•For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
1.Who is eligible to claim the $8,000 tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.
Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.
2.What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, IRS Notice 2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3.How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4.Are there any income limits for claiming the tax credit?
Yes. For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5.The income limits for claiming the tax credit were raised when the tax credit was extended. Are the higher limits retroactive?
No. The new income limits are only applicable to purchases occurring after November 6, 2009.
The income limits for sales occuring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
6.What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.
7.If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
8.Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
9.How is this home buyer tax credit different from the tax credit that Congress enacted in early 2009?
The tax credit’s income limits were increased, the documentation requirements were tightened, and the program's deadlines were extended.
10.How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
11.What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
12.I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
13.Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
14.Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with an MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15.I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.
16.I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17.Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
18.I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
19.Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
20.HUD is now allowing "monetization" of the tax credit. What does that mean?
It means that HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.
Under HUD’s guidelines, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans of up to $8,000. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement. In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.
More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
21.If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
22.For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
Based on http://www.federalhousingtaxcredit.com
You can search Over 40,000 Houston Real Estate Listings for Sale right now
Saturday, October 31, 2009
Are you using videos to market your Houston home for sale?
Full motion, high definition videos of properties for sale like this one http://bit.ly/2S1KJr are in demand from home buyers and home sellers and are the future of real estate marketing. Yet it seems that not so many real estate professionals are using videos so far. Many agents are using slide shows or virtual tours and call them incorrectly as videos.Walk through Videos are the most effective way of giving maximum exposure to potential home buyers of properties for sale as 24/7 Open Houses. They are win-win tools for all parties involved:
For home sellers:
1. Give a maximum exposure for their houses for sale
2. More potential buyers "walk through" houses online before they actualy decide to go there
3. Save home sellers time since videos help eliminate actual showings just for lookers
4. Help sell houses faster
For home buyers:
1. Save time and fuel cost involved in driving to preview homes
2. Convenience, they can "walk through" houses online anytime, at their convenience from the comfort of their home
3. Help out of time buyers to "walk through" houses they are interested to buy without the expense of flying or driving
For real estate agents:
1. Save time and fuel cost involved in driving home buyers to preview houses, since buyers can decide which houses they really would like to go to and eliminate those not matching their interest.
2. Give maximum exposure to their listings and help them get more listings
Videos also help home buyers to preview neighborhoods before they decide to buy a house http://bit.ly/2poMKH
For home sellers:
1. Give a maximum exposure for their houses for sale
2. More potential buyers "walk through" houses online before they actualy decide to go there
3. Save home sellers time since videos help eliminate actual showings just for lookers
4. Help sell houses faster
For home buyers:
1. Save time and fuel cost involved in driving to preview homes
2. Convenience, they can "walk through" houses online anytime, at their convenience from the comfort of their home
3. Help out of time buyers to "walk through" houses they are interested to buy without the expense of flying or driving
For real estate agents:
1. Save time and fuel cost involved in driving home buyers to preview houses, since buyers can decide which houses they really would like to go to and eliminate those not matching their interest.
2. Give maximum exposure to their listings and help them get more listings
Videos also help home buyers to preview neighborhoods before they decide to buy a house http://bit.ly/2poMKH
Friday, September 25, 2009
"We Buy Houses" Scams. How to Spot Scams and How to Avoid Them.
There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, divorce and inheritance are just a few. Unfortunately, people in need also tend to attract predators who have no problem profiting from someone else's misfortune.
If you're looking to sell a house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.
Equity Scam
One of the most common types of "we buy houses" scams allows the "buyer" of the home to make off with most or all of your equity. It begins with you transferring your home's deed to the "buyer." The buyer may then have you make payments to him instead of the mortgage company, or he may have you move out so he can begin renting out the house.
There are several ways the buyer can then profit from this transaction. First, he receives some sort of payment every month — whether from you or from the renter. Second, he can use the equity in your home to secure home equity loans or other lines of financing. Third, he can simply resell the house without satisfying the outstanding mortgage.
Ultimately, once most of his profit is exhausted, he simply stops making payments on the mortgage and allows the home to go into foreclosure, because while he holds the deed to the home, he never assumed liability for the mortgage. As a result, you are left with a foreclosed home, no remaining equity and a significant black spot on your credit history.
Contract Bait and Switch
The contract "bait and switch" is a clever scheme that takes advantage of the trust between buyer and seller.
In one version of this scam, the home buyer inspects your house and makes a verbal offer that you accept. A few days later, he presents you with a written contract that he presents as "just a formal, legal version" of your verbal agreement. Because you believe it to be the same offer you had already agreed to, you simply skim it and sign on the dotted line.
In the time between signing and closing, he may also deliver one or more "minor changes" to the contract. He presents these as simply "a few tweaks" and nothing that really affects the original agreement.
At some point, though, possibly at the closing or even later, you discover that the last contract you signed actually bears little resemblance to the initial offer, and you are either stuck with a losing home sale or tangled in legal battles for months or even years to get out of the contract.
Liberian FSBO
This scam is an interesting twist on the Nigerian Scam or 419 Scam. In it, a person outside the U.S. contacts you after seeing your house on a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.
Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.
How to Protect Yourself from Scams
If you need to sell a house fast, here are a few rules for protecting yourself from falling prey to a scam like these.
Only Work with Professionals
The best way to protect yourself from scams is to work only with real estate professionals. Never sign documents you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand. Make sure that closing takes place at the title company, and/or real estate attorney is involved (depending of the rules in the state where you live).
Check Out the Buyer
If you have any concerns about the buyer, don't hesitate to check them out. Contact your state Attorney General's office, your state's Real Estate Commission, or your District Attorney's Consumer Fraud Unit. If they are an established business, also check out the Better Business Bureau.
Always Understand What You're Signing
Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn't what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand.
Get All Agreements in Writing
If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don't risk that. Insist that all terms be in writing, and don't agree to anything that isn't.
If something sounds too good to be true, it usually is. So don't get so emotionally tied up in the sale of your home that you abandon caution and logic.
If you're looking to sell a house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.
Equity Scam
One of the most common types of "we buy houses" scams allows the "buyer" of the home to make off with most or all of your equity. It begins with you transferring your home's deed to the "buyer." The buyer may then have you make payments to him instead of the mortgage company, or he may have you move out so he can begin renting out the house.
There are several ways the buyer can then profit from this transaction. First, he receives some sort of payment every month — whether from you or from the renter. Second, he can use the equity in your home to secure home equity loans or other lines of financing. Third, he can simply resell the house without satisfying the outstanding mortgage.
Ultimately, once most of his profit is exhausted, he simply stops making payments on the mortgage and allows the home to go into foreclosure, because while he holds the deed to the home, he never assumed liability for the mortgage. As a result, you are left with a foreclosed home, no remaining equity and a significant black spot on your credit history.
Contract Bait and Switch
The contract "bait and switch" is a clever scheme that takes advantage of the trust between buyer and seller.
In one version of this scam, the home buyer inspects your house and makes a verbal offer that you accept. A few days later, he presents you with a written contract that he presents as "just a formal, legal version" of your verbal agreement. Because you believe it to be the same offer you had already agreed to, you simply skim it and sign on the dotted line.
In the time between signing and closing, he may also deliver one or more "minor changes" to the contract. He presents these as simply "a few tweaks" and nothing that really affects the original agreement.
At some point, though, possibly at the closing or even later, you discover that the last contract you signed actually bears little resemblance to the initial offer, and you are either stuck with a losing home sale or tangled in legal battles for months or even years to get out of the contract.
Liberian FSBO
This scam is an interesting twist on the Nigerian Scam or 419 Scam. In it, a person outside the U.S. contacts you after seeing your house on a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.
Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.
How to Protect Yourself from Scams
If you need to sell a house fast, here are a few rules for protecting yourself from falling prey to a scam like these.
Only Work with Professionals
The best way to protect yourself from scams is to work only with real estate professionals. Never sign documents you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand. Make sure that closing takes place at the title company, and/or real estate attorney is involved (depending of the rules in the state where you live).
Check Out the Buyer
If you have any concerns about the buyer, don't hesitate to check them out. Contact your state Attorney General's office, your state's Real Estate Commission, or your District Attorney's Consumer Fraud Unit. If they are an established business, also check out the Better Business Bureau.
Always Understand What You're Signing
Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn't what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand.
Get All Agreements in Writing
If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don't risk that. Insist that all terms be in writing, and don't agree to anything that isn't.
If something sounds too good to be true, it usually is. So don't get so emotionally tied up in the sale of your home that you abandon caution and logic.
Tuesday, September 15, 2009
Be Cautious About Giving Info to Census Workers
With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data. The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:
** If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.
** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.
Eventually, Census workers may contact you by telephone, mail, or in person at home. However, they will not contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.
For more advice on avoiding identity theft and fraud, visit www.bbb.org.
** If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.
** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.
Eventually, Census workers may contact you by telephone, mail, or in person at home. However, they will not contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.
For more advice on avoiding identity theft and fraud, visit www.bbb.org.
Friday, September 11, 2009
Should I pay off or not pay off my mortgage early?
Visit msnbc.com for Breaking News, World News, and News about the Economy
Wednesday, September 09, 2009
Friday, September 04, 2009
$8,0000 Tax Credit - Real Estate Cash for Action !
Cash for clunkers was a success in many ways. It helped the economy, it helped the environement, it helped many new car owners who took advantage of $4,500 offerred by this program. It is still helping and will help them saving money on fuel cost in years to come, when they are going to drive their newly purchased, more efficient cars. Thinking about Real Estate, the $8,000 Tax Credit, can be called Real Estate Cash for Action of buying first home. The action, which has to be taken by qualified, first time home buyers. If they want take advantage of this money, they should buy a house and close escrow by the end of November 2009. With low home prices and low interest rates, the first time home buyers should take action NOW! It is the beginning of September, so less than 2 months before this $8,000 Tax Credit will be gone. Timing is very important here, especially for first time home buyers with FHA loans, when home buying process may take 45 days or longer. But even with conventional home loans this process may take well over 30 days due to recent changes in Truth In Lending Act. If you are Houston area first time home buyer, talk to your Houston Realtor, who will help you find the right house and will walk you through complicated home buying process.
Tuesday, September 01, 2009
Flood of Foreclosures is coming
The new wave of Foreclosures Flood is coming due to growing unemployment
and economical problems.
and economical problems.
Sunday, August 30, 2009
More About Foreclosure Rescue Scams
Houston homeowners (and not only Houston homeowners), be aware of Foreclosure Scams!
In addition to my previous blog regarding Foreclosure Scams, here is a very good article regarding this topic http://bit.ly/hI0LE
In addition to my previous blog regarding Foreclosure Scams, here is a very good article regarding this topic http://bit.ly/hI0LE
Monday, August 24, 2009
What you should do if you become a victim of identity fraud
This is a very useful information I found on Bankrate.com.
As soon as you suspect that you've been victimized, taking these steps immediately will help you clear your name and your credit.
12-step program for ID theft victims:
1.Notify affected creditors or bank
If a bank account or existing credit line has been affected, shutting it down should be the first order of business. Working with the credit card company or the bank as soon as possible can save you money. In general, most credit cards have zero-liability policies, but the Fair Credit Billing Act specifies that your maximum liability for unauthorized charges is $50.
ATM or debit cards and electronic transfers from your bank account fall under the Electronic Fund Transfer Act. Under this act, consumers have to move fast. Reporting a lost or stolen ATM or debit card before any fraudulent transactions means the victim is off the hook for any that happen afterward.
But if purchases or withdrawals are made, consumers have a small window of two business days to report the unauthorized charges or transfers and get a $50 liability limit. After that, there is a $500 liability limit for up to 60 days after the statement reflecting the fraud is mailed. After 60 days, consumers are exposed to unlimited liability.
Consumers should also notify banks of any lost or stolen checks.
2. Put a fraud alert on your credit report
"Contact any one of the three credit reporting agencies and request a fraud alert. By doing so, a fraud alert will be put on all three of your credit files," says Steven Katz, director of consumer education for TransUnion's TrueCredit.com.
The fraud alert will last 90 days. After you've filed a police report or filled out the ID theft complaint form from the FTC, you can put an extended fraud alert on your credit file which will last seven years.
"Filing a fraud alert is probably the best step for someone who is unsure if they are a victim," says Katz.
A credit freeze will provide more protection but can be restrictive when applying for credit.
3. Check your credit reports
After installing a fraud alert in your credit file, you'll automatically receive a free credit report from each of the three agencies and you will be opted out of preapproved credit card and insurance offers. After you receive your reports, make note of the unique number assigned to your account. This will be valuable in all your communications with the agencies.
Check your reports for signs of fraud -- new accounts you didn't open, hard inquiries you don't recognize, payment history you can't account for, an employer you never worked for and personal information unfamiliar to you. Pull each of your credit reports at least once over the course of the next year to check for fraudulent activity. Use an identity theft report to get fraudulent information removed from your reports.
4. Consider putting a credit freeze on your reports
"A credit freeze is a good thing to do if you know you're a victim, as it will completely lock down all your credit information," says TransUnion's Katz.
A credit freeze prevents the credit-reporting agencies from releasing your credit report to new creditors. The cost is $10 in most states to place a freeze at each bureau, and is usually free if you can prove you're an ID theft victim.
5. Contact the FTC
Contact the FTC at (877) 438-4338. While federal investigators only tend to pursue larger, more sophisticated fraud cases, they monitor identity theft crimes of all levels in the hopes of discovering patterns and breaking up larger rings.
More importantly, fill out the ID theft affidavit at the FTC's Web site, make copies and send them to your creditors. The agency also has an online complaint form. After filling it out, print out the ID theft complaint form for your records. Together with a police report, it serves as your ID theft report, which will help you dispute fraudulent accounts.
According to the FTC Web site, an ID theft report is more comprehensive than a police report alone. Your local police department may incorporate the ID theft complaint form into its report or they might have another way of providing the full details needed for an ID theft report.
6. Go to the police
Alert the police in your city. You may also need to report the crime to the police departments where the crime occurred.
Securing a police report is of utmost importance. But not all states have legislated that local law enforcement must take a police report on identity theft from consumers. A report released in November 2007 by the Identity Theft Resource Center, "The Aftermath," found that 24 percent of the victims of identity theft who answered the survey could not get the police to take a report.
The FTC provides a cover letter to give to local law enforcement which stresses the importance of police reports for consumer victims.
Make sure the police report lists all fraud accounts. Give as much documented information as possible and give them a copy of the ID theft complaint form from the FTC.
If the police cannot give you a copy of their report, request that they sign your FTC complaint form and provide the police report number in the "Law Enforcement Report" section. Keep the phone number of your police investigator handy on a contact sheet for future reference.
7. Send creditors a copy of your ID theft report
Notify creditors in writing that you have been a victim of fraud and include a copy of your ID theft report.
Further, ask each affected creditor to provide you and your investigating law enforcement agency with copies of the documents showing fraudulent transactions. You may have to fight to get this documentation, but don't give up. You'll need these to help track down the perpetrator.
Informing creditors of the fraud should get them to stop reporting the information to the credit reporting agencies.
"We always advise that you contact the creditor first because they will continue to report that information that they have. But we take steps on our end to make sure that the fraudulent information doesn't show up on the credit report," says Katz.
8. Contact credit reporting agencies
By sending a copy of your ID theft report to the consumer reporting agencies, fraudulent accounts should be blocked from appearing on your credit report.
Nonetheless, consumers must keep a close eye on credit reports to make sure that erroneous information doesn't get added again. Watch related video
The Identity Theft Resource Center's report, "The Aftermath," found that 43 percent of victims questioned had bad information added back onto their credit reports, and 39 percent found that the credit reporting agencies would not remove the information.
"Often the bad information that they thought they had cleared up mysteriously reappears," says Ed Mierzwinski, U.S. PIRG consumer program director.
9. Change all account passwords
If an account doesn't have a password, put one on it. Avoid using obvious passwords such as the last four digits of your Social Security number or your birth date.
10. Contact the Social Security fraud hot line
Notify the Office of the Inspector General if your Social Security number has been fraudulently used. Ask for a copy of your Personal Earnings and Benefits Statement and check for accuracy.
11. Get a new driver's license
You may need to change your driver's license number if someone is using yours as an ID. Go to the Department of Motor Vehicles to get a new number.
12. Contact your telephone and utility companies
They need to be alerted in case an identity thief tries to open a new account in your name, using a utility bill as proof of residence.
As soon as you suspect that you've been victimized, taking these steps immediately will help you clear your name and your credit.
12-step program for ID theft victims:
1.Notify affected creditors or bank
If a bank account or existing credit line has been affected, shutting it down should be the first order of business. Working with the credit card company or the bank as soon as possible can save you money. In general, most credit cards have zero-liability policies, but the Fair Credit Billing Act specifies that your maximum liability for unauthorized charges is $50.
ATM or debit cards and electronic transfers from your bank account fall under the Electronic Fund Transfer Act. Under this act, consumers have to move fast. Reporting a lost or stolen ATM or debit card before any fraudulent transactions means the victim is off the hook for any that happen afterward.
But if purchases or withdrawals are made, consumers have a small window of two business days to report the unauthorized charges or transfers and get a $50 liability limit. After that, there is a $500 liability limit for up to 60 days after the statement reflecting the fraud is mailed. After 60 days, consumers are exposed to unlimited liability.
Consumers should also notify banks of any lost or stolen checks.
2. Put a fraud alert on your credit report
"Contact any one of the three credit reporting agencies and request a fraud alert. By doing so, a fraud alert will be put on all three of your credit files," says Steven Katz, director of consumer education for TransUnion's TrueCredit.com.
The fraud alert will last 90 days. After you've filed a police report or filled out the ID theft complaint form from the FTC, you can put an extended fraud alert on your credit file which will last seven years.
"Filing a fraud alert is probably the best step for someone who is unsure if they are a victim," says Katz.
A credit freeze will provide more protection but can be restrictive when applying for credit.
3. Check your credit reports
After installing a fraud alert in your credit file, you'll automatically receive a free credit report from each of the three agencies and you will be opted out of preapproved credit card and insurance offers. After you receive your reports, make note of the unique number assigned to your account. This will be valuable in all your communications with the agencies.
Check your reports for signs of fraud -- new accounts you didn't open, hard inquiries you don't recognize, payment history you can't account for, an employer you never worked for and personal information unfamiliar to you. Pull each of your credit reports at least once over the course of the next year to check for fraudulent activity. Use an identity theft report to get fraudulent information removed from your reports.
4. Consider putting a credit freeze on your reports
"A credit freeze is a good thing to do if you know you're a victim, as it will completely lock down all your credit information," says TransUnion's Katz.
A credit freeze prevents the credit-reporting agencies from releasing your credit report to new creditors. The cost is $10 in most states to place a freeze at each bureau, and is usually free if you can prove you're an ID theft victim.
5. Contact the FTC
Contact the FTC at (877) 438-4338. While federal investigators only tend to pursue larger, more sophisticated fraud cases, they monitor identity theft crimes of all levels in the hopes of discovering patterns and breaking up larger rings.
More importantly, fill out the ID theft affidavit at the FTC's Web site, make copies and send them to your creditors. The agency also has an online complaint form. After filling it out, print out the ID theft complaint form for your records. Together with a police report, it serves as your ID theft report, which will help you dispute fraudulent accounts.
According to the FTC Web site, an ID theft report is more comprehensive than a police report alone. Your local police department may incorporate the ID theft complaint form into its report or they might have another way of providing the full details needed for an ID theft report.
6. Go to the police
Alert the police in your city. You may also need to report the crime to the police departments where the crime occurred.
Securing a police report is of utmost importance. But not all states have legislated that local law enforcement must take a police report on identity theft from consumers. A report released in November 2007 by the Identity Theft Resource Center, "The Aftermath," found that 24 percent of the victims of identity theft who answered the survey could not get the police to take a report.
The FTC provides a cover letter to give to local law enforcement which stresses the importance of police reports for consumer victims.
Make sure the police report lists all fraud accounts. Give as much documented information as possible and give them a copy of the ID theft complaint form from the FTC.
If the police cannot give you a copy of their report, request that they sign your FTC complaint form and provide the police report number in the "Law Enforcement Report" section. Keep the phone number of your police investigator handy on a contact sheet for future reference.
7. Send creditors a copy of your ID theft report
Notify creditors in writing that you have been a victim of fraud and include a copy of your ID theft report.
Further, ask each affected creditor to provide you and your investigating law enforcement agency with copies of the documents showing fraudulent transactions. You may have to fight to get this documentation, but don't give up. You'll need these to help track down the perpetrator.
Informing creditors of the fraud should get them to stop reporting the information to the credit reporting agencies.
"We always advise that you contact the creditor first because they will continue to report that information that they have. But we take steps on our end to make sure that the fraudulent information doesn't show up on the credit report," says Katz.
8. Contact credit reporting agencies
By sending a copy of your ID theft report to the consumer reporting agencies, fraudulent accounts should be blocked from appearing on your credit report.
Nonetheless, consumers must keep a close eye on credit reports to make sure that erroneous information doesn't get added again. Watch related video
The Identity Theft Resource Center's report, "The Aftermath," found that 43 percent of victims questioned had bad information added back onto their credit reports, and 39 percent found that the credit reporting agencies would not remove the information.
"Often the bad information that they thought they had cleared up mysteriously reappears," says Ed Mierzwinski, U.S. PIRG consumer program director.
9. Change all account passwords
If an account doesn't have a password, put one on it. Avoid using obvious passwords such as the last four digits of your Social Security number or your birth date.
10. Contact the Social Security fraud hot line
Notify the Office of the Inspector General if your Social Security number has been fraudulently used. Ask for a copy of your Personal Earnings and Benefits Statement and check for accuracy.
11. Get a new driver's license
You may need to change your driver's license number if someone is using yours as an ID. Go to the Department of Motor Vehicles to get a new number.
12. Contact your telephone and utility companies
They need to be alerted in case an identity thief tries to open a new account in your name, using a utility bill as proof of residence.
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