Twin Cities foreclosures increased by about 22 percent in the first three months of 2010 from the same period one year ago, according to a new industry report out Thursday.
To read the full article as published in Minneapolis / St. Paul Business journal click on the following:UNDER THE NEW HEALTH CARE BILL - DID YOU KNOW THAT ALL REAL ESTATE TRANSACTIONS ARE SUBJECT TO A 3.8% "SALES TAX"?
YOU CAN THANK NANCY, HARRY & BARACK (AND YOUR LOCAL CONGRESSMAN) FOR THIS ONE.
IF YOU SELL YOUR $400,000 HOME, THIS WILL BE A $15,200 TAX.
As with most things found circulating through the "blog-o-sphere" of our partisan world, this is not entirely true. It is also not entirely false. The new Health Care Bill does include a new 3.8% tax on SOME high income earners ($200,000 single/$250,000 married) after the current capital gains exclusion of $250,000 for singles/$500,000 for married. You can review an accurate portrayl of the new tax at: http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/
Of real interest to REALTORS® is the willingness of government to look at housing benefits for tax revenue. In 2009, the Minnesota House of Representatives passed a bill calling for a significant reduction and redistribution of the Mortgage Interest Deduction and elminition of the property tax deduction in Minnesota. This bill was not accepted by the Senate, but it did pass the MN House of Representatives. President Obama's Budget (not yet passed into law) includes a 5-year reduction in the Mortgage Interest Deduction at the federal level. And, as we noted above, there is an increase in the taxes paid for some homeowners in order to help fund the Health Care Bill.
As demographics change and government looks for items to tax, real estate is no longer viewed as an untouchable cornerstone of the American Dream. Instead, government at the state and federal level are increasingly willing to chip away at real estate tax benefits. This strategy slowly erodes the benefits in a way that many don't realize until it is too late to stop. It reminds me of the story about cooking frogs. Toss a frog in boiling water and it will jump out, place a frog in a kettle of cool water and it will adapt as the temperature rises - even to its inevitable destruction.
I am frequently asked about buying houses at Auctions. Auctions are heavily publicized. Here's a link to an excellent Wall Street Journal article concerning auctions. Although the article focuses on auctions in Maryland many of the same principles are applicable in Minnesota.
My advice is the same as the article's first paragraph, "You can pick up a deal at an auction—if you do a lot of sleuthing in advance, and can keep your emotions in check. But realize that seasoned investors often cherry-pick most of the best properties . . . You should find a good buyer broker who's experienced with foreclosures . . . "
Under rules released this month that will take effect in July, some troubled borrowers who give up their homes by voluntarily transferring ownership through a "deed in lieu of foreclosure" or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in . . . years to apply for a new mortgage backed by Fannie.
Currently, borrowers who complete a deed-in-lieu of foreclosure must wait . . .
Read the complete article in the Wall Street Journal
Donald Jackson, CEO of Maple Grove-based Poor No More 2008 Productions, said he intends to make the declining regional mall into the home for a TV and film production studio for independent film producers along with bringing in a technical education academy and maintaining a big mix of retailers.
For the complete story click on Finance and Commerce
Related information:
Brookdale Mall Sold at Auction as reported by KSTP.com
Representatives of Walmart approached owners of Brookdale saying the retail giant may build a Superwalmart on the Brookdale site. Reported by KARE11.com news
NEW YORK (CNNMoney.com) -- If you're delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much?
For the complete article by click CNNMoney.com
Mortgage rates remain relatively stable from last week.
The average interest rate for a 30-year fixed-rate mortgage at 5.07%, steady from last week’s average rate. A year ago, the average rate was 4.8%.
For complete information click onto "HOUSINGWIRE"
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