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JLS Investment Realty Blog
January 17th, 2011 9:32 PM
FAQ on Chinese Drywall
November 23rd, 2009 1:25 PM

Question: What are the health symptoms and risks?

Answer: The most frequently reported symptoms are irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infection, and asthma attacks. Since many consumers report that their symptoms lessen or go away when they are away from their home, but return upon re-entry, it appears that these symptoms are short-term and related to something within the home.

We are aggressively investigating if scientific evidence exists linking chemical emissions from the drywall to the reported health complaints. At this time, however, any such relationship or long-term health effects are unknown.


Question: What should I do if I have any of the symptoms described as common to exposure to problem drywall?

Answer: Please consult your physician as soon as possible.

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Question: Should I hire an air quality tester or a firm to remove and replace the drywall?

Answer: We cannot advise whether or not to take such steps. We are still investigating the problem.

Please be cautious, however, of persons or businesses advertising testing and remediation services - there may be unqualified or dishonest individuals seeking to take advantage of consumers struggling to address this issue. You should consult your State and local authorities if you have any questions or concerns about contractors or testing companies promising solutions to these drywall matters.

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Question: What are the electrical or fire safety concerns and what I should I watch for in my house?

Answer: Consumers have reported blackened and corroded metal in their homes. Particularly, consumers have reported failures of certain components such as: (1) premature failures of central air conditioning evaporator coils located indoors as part of the central air conditioning unit air handler; and (2) intermittent operation or failure of appliances, such as refrigerators and dishwashers, and electronic devices such as televisions and video game systems.

Please see the FAQ below if you have questions about gas service.

You should generally watch for the following potential electrical hazards in your home:

Power outages - a circuit breaker which needs resetting frequently without any apparent cause; especially if a ground-fault circuit interrupter (GFCI) or arc fault circuit interrupter (AFCI) trips frequently. Arc-fault circuit interrupters are a special kind of circuit breaker that is designed to detect arcing conditions in the electrical wiring.

Dim/flickering lights - lights dim often without any specific cause, such as the air conditioner or the refrigerator turning on.

Arcs/sparks - bright flashes or showers of sparks anywhere in your electrical system.

Sizzles/buzzes - unusual sounds from electrical system devices.

Overheating - parts of your electrical system, such as switch plates, dimmer switches, receptacle outlet covers, cords and plugs may be warm as a normal consequence of their operation but should not be discolored from heat or painful to touch.

Odors - pungent smells such as strong fumes from overheating plastic or electrical insulation materials.

Electrical shocks - any shock, even a mild tingle.

Multiple symptoms would be a stronger indication of problems.

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Question: What should I do if I suspect the corrosion has affected my gas service?

Answer: If you suspect corrosion has affected your gas service, please consult your gas supplier immediately.

However, if you suspect a gas leak in or outside your home:

  • LEAVE the area IMMEDIATELY and tell others to leave too.
  • DO NOT turn any lights on or off, smoke, or operate any vehicle or equipment that could cause sparks.
  • DO NOT attempt to turn gas valves on or off.
  • Immediately call your gas supplier from a neighbor's phone. Follow the gas supplier's instructions.
  • If you cannot reach your gas supplier, call the fire department.
  • Installation and service must be performed by a qualified installer, service agency or the gas supplier.

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Question: What should I do if I experience any of the electrical or fire safety concerns common to exposure to problem drywall?

Answer: Please consult your local gas or electric supplier and a licensed electrician or building inspector, as soon as possible.

Please see the FAQ above if you have questions about gas service.

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Question: Can you visit my home to test the air and to tell me if I have a problem with my drywall?

Answer: During our investigation, a number of homes will be visited to conduct tests and gather samples, but we cannot visit every potential house and conduct a screening.

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Question: What builders used the drywall in question?

Answer: We are still investigating the scope of the drywall problem. We are working to identify the links from foreign manufacturers to the U.S. consumers in consultation with the Chinese government and the U.S. Customs and Border Protection.

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Question: Why doesn't the CPSC just recall the drywall?

Answer: CPSC cannot order someone to conduct a recall without a trial. Our case on behalf of consumers will have to be driven by scientific proof linking the drywall and the health problems or the electrical and fire safety issues, which we are aggressively pursuing.

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Question: Why didn't the CPSC catch this problem drywall before it was installed in homes?

Answer: CPSC does not have the legal authority to perform pre-market testing and approval of products. In addition, this is a unique situation given that drywall has not presented problems such as these in the past.

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Question: What has been the response of the Chinese government?

Answer: CPSC is in contact with the Chinese government, which is cooperating with our investigation. The Chinese authorities have offered to arrange for a Chinese official to travel to the United States in support of our investigation.

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Question: When will we know the results of the investigation?

Answer: Although we have urgently committed significant resources to this problem, gathering evidence and conducting the necessary tests will take time. It could be months before we can confidently address the scientific relationships between the problem drywall and the health and safety concerns raised by consumers.

Be assured that, as our investigation progresses, we are committed to updating consumers regularly with as much information as possible

http://www.cpsc.gov/info/drywall/faqs.html


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:25 PMPost a Comment (0)

Happy Thanksgiving
November 26th, 2009 8:08 PM

Spread peace & thanks to all of your loved ones this Thanksgiving.


Posted by Jennifer Stepanek, P.A. on November 26th, 2009 8:08 PMPost a Comment (0)

October home sales rise 10.1 pct from September
November 23rd, 2009 1:36 PM

October home sales rise 10.1 pct from September

WASHINGTON – Home sales surged for the second month in a row in October, climbing to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit.

Home sales nationwide are now up nearly 37 percent from their bottom in January, data Monday showed, though they are still 16 percent below the peak in autumn 2005. At the current sales pace, there is only a 7-month supply of homes on the market and in some areas there are bidding wars.

Joey Wilson, 53, and her husband made unsuccessful offers on 20 Las Vegas homes since midsummer before closing on a four-bedroom, $136,000 home this month.

"It's insane," said Wilson, who relocated from Kentucky. "I've never seen a market like this before."

The National Association of Realtors said home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade, and far above the 5.65 million pace expected by economists, according to Thomson Reuters.

The recovery is being driven by lower prices combined with federal programs to lower mortgage rates and bring more buyers into the market. The median sales price was $173,100, down 7 percent from a year earlier and off roughly 2 percent from September.

Many experts predict prices will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.

The government has tried to counter that trend by offering a tax incentive for first-time buyers and by keeping mortgage rates around 5 percent since the spring.

The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.

The Realtors' report on October home sales reflects offers made before buyers knew the tax credit would be extended.

"The incentives really did get people to go out and buy," said Wells Fargo economist Adam York. "The question is: What does the trend look like when the credit is over with?"

Home sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline.

The new deadline means "we're going to see some good activity coming out of the spring," said Pat Lashinsky, chief executive of online real estate brokerage ZipRealty Inc.

But the government support can't last forever. For example, the Federal Reserve is likely to curtail its effort to push down mortgage rates next year. If rates then rise too high, it would make home purchases less affordable and dampen housing demand.

"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with real estate information company First American CoreLogic. "It's really hard to tell."

http://news.yahoo.com/s/ap/20091123/ap_on_bi_ge/us_home_sales;_ylt=ArMudFYH_34lNAJeoGyPFR6GOrgF;_ylu=X3oDMTJnaTBpMmxpBGFzc2V0A2FwLzIwMDkxMTIzL3VzX2hvbWVfc2FsZXMEY3BvcwMxBHBvcwMxBHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDdXNob21lc2FsZXNz


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:36 PMPost a Comment (0)

Where has problem drywall been Reported?
November 23rd, 2009 1:24 PM
Where has problem drywall been reported?

Answer: To date, the CPSC has received about 2,091 reports from residents in 32 States, the District of Columbia, and Puerto Rico who believe their health symptoms or the corrosion of certain metal components in their homes are related to the presence of drywall produced in China. State and local authorities have also received similar reports. We received our first incident report from a consumer on December 22, 2008. The majority of the reports to the CPSC have come from consumers residing in the State of Florida while others have come from consumers in Alabama, Arizona, California, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.




Number (and Percentage) of Reports by State

Distribution among affected states

Consumers largely report that their homes were built in 2006 to 2007, when an unprecedented increase in new construction occurred in part due to the hurricanes of 2004 and 2005.Common features of the reports submitted to the CPSC from homes believed to contain problem drywall have been:

  • Consumers have reported a "rotten egg" smell within their homes.
  • Consumers have reported health concerns such as irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infection, and asthma attacks.
  • Consumers have reported blackened and corroded metal components in their homes and the frequent replacement of components in air conditioning units.

http://www.cpsc.gov/info/drywall/where.html


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:24 PMPost a Comment (0)

How can I tell if my home has problem drywall?
November 23rd, 2009 1:23 PM

How can I tell if my home has problem 
drywall?

Answer: We are currently not aware of any definitive test to determine if a home has problem drywall. Nevertheless, you might consider contacting your homebuilder to ask about the materials used in construction.

Consumers raising concerns about drywall have typically identified a "rotten egg" smell within their house, several health symptoms while in the home, and corrosion or blackening of certain metal items. Consumers have also reported frequent failures of copper piping in air conditioning units.

Picture of 
the back-side of drywall
The back-side of this drywall (not normally visible to the resident) is labeled as "MADE IN CHINA."

Picture of person holding pieces of drywall
The smaller sample (slightly gray in color) was taken from drywall which was removed
from the home and replaced with new wallboard (white in color).

Picture of the back-side of drywall
The ground wire connected to the green screw is blackened and corroded.
This wire should be copper-colored.

Picture of a bathroom lighting fixture
This bathroom lighting fixture is pitted and corroded.

Picture of air conditioner
 copper coils
The copper coils on this air conditioner unit are blackened and corroded.

Picture of the copper plumbing
This copper pipe is blackened.
http://www.cpsc.gov/info/drywall/how.html

Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:23 PMPost a Comment (0)

U.S. Consumer Product Safety Commission Report
November 23rd, 2009 1:20 PM

U.S. Consumer Product Safety Commission Report

drywall information center

1-800-638-2772

On October 29, 2009 the U.S. Consumer Product Safety Commission (CPSC) released the following documents as part of work being done by the CPSC, U.S. Environmental Protection Agency (EPA), U.S. Department of Housing and Urban Development (HUD), Centers for Disease Control and Prevention (CDC), Agency for Toxic Substance and Disease Registry (ATSDR), Florida Department of Health, Louisiana Department of Health and Hospitals and the Virginia Department of Health. These agencies coordinated efforts to investigate and analyze how corrosive drywall entered the country, where it was used, what is in it, and what impact it may have on human health and corrosion of electrical and metal components:

CPSC Reports

Results and procedures used by the Florida Department of Health to investigate the four homes it studied as part of the 10-home air monitoring study. Interpretation and findings for the Florida data are included in the CPSC's 10-home air monitoring study report:

The Florida Report: (4.5 MB Zip file)

http://www.doh.state.fl.us/ENVIRONMENT/community/indoor-air/drywall.html


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:20 PMPost a Comment (0)

Florida’s Chinese Drywall Problems Go Back at Least 3 Years
November 23rd, 2009 1:19 PM

Problems with defective Chinese drywall may have been plaguing Florida homeowners longer than first thought. According to a report in the South Florida Business Journal, some builders in Florida have been quietly settling complaints over defective Chinese drywall for the past three years.

Over the past several months, owners of newer homes in South Florida have been complaining of drywall that smells like rotten eggs. In several cases, they have had to leave their home because the smell was so bad. In addition to the putrid smell, many South Florida homeowners have reported problems with air conditioning and other systems that are likely related to the defective Chinese drywall. Some spent hundreds – even thousands of dollars – to have air conditioning, pipes and wiring repaired.

Usually, drywall is manufactured in the United States, but a shortage between 2004 and 2006 prompted many builders to buy drywall from China. Most of the reported problems stem from drywall imported from China during Florida’s construction boom years of 2004-2005. Knauf Plasterboard Tianjin Co. Ltd. of China, a subsidiary of German-based manufacturer Knauf Group, is the company at the focus of Florida’s drywall problems. Another Chinese drywall maker, Taishan Gypsum, has also been implicated.

The drywall problems have sparked several lawsuits. Late last month, the Bonita Springs law firm of Parker Waichman Alonso LLP filed a class action lawsuit against Knauf Plasterboard, Taishan and others. The lawsuit, which was filed in U.S. District court in Fort Myers, charges that the defendants negligently manufactured and sold the defective drywall, which was “unreasonably dangerous” in normal use because it caused corrosion to air-conditioning and electrical components, and caused coughing and irritation of sinuses, eyes and throats. It goes on to state that, “when combined with moisture in the air, these sulfur compounds create sulfuric acid.”

Lennar Homes, one of the biggest builders in Florida, has also sued Knauf and Taishan because of the drywall issue. The Lennar lawsuit also charges 12 installers with breach of contract and breach of express and implied warranty. Lennar claimed that independent subcontractors installed the defective Chinese drywall in some homes, and it was unaware it was being used.

Lennar recently released its own test results of the Chinese drywall. Those tests, conducted last year by Environ International, found three sulfide gases – carbon disulfide, carbonyl sulfide and dimethyl sulfide. Hydrogen sulfide, a particularly dangerous compound with a characteristic rotten-eggs smell, was not found in Environ’s air tests, but it was found in previous testing that the company conducted on the Chinese drywall itself. The Florida Health Department is also conducting tests, and results are expected next month.

According to an attorney interviewed by the South Florida Business Times, “a number of developers throughout South Florida have experienced problems over the last couple years.” The lawyer told the Business Times that builders probably weren’t required to notify all their customers of the potential problem.

According to the report, only Lennar has provided details about its handling of drywall complaints. The company told the Business Times that it dealt with problems as homeowners brought them to its attention. However, Lennar is not saying how other homeowners were notified of the problem.

As we reported last month, Lennar had issued a statement that said it intends to replace damaged fixtures in the homes, which could include plumbing, electrical wiring and air conditioning systems. At the time, the builder said it had 80 of its homes in Southwest Florida that appear to contain the suspect drywall and is investigating 40 more, news-press.com said. About 30 of the 80 Lennar homes confirmed to have the drywall are in Lennar’s Heritage Harbor development in east Manatee County.

According to the Business Times another builder, WCI Communities, has also acknowledge the drywall problem. The company, which is in Chapter 11 bankruptcy, said in a January 28 filing that it believes “drywall manufactured in China may have been installed in certain portions of some homes that were built and sold prior to the Chapter 11 filing.” WCI has not revealed which of its developments are affected and whether homeowners in those communities were notified, the Business Times said.

Only one other builder, South Kendall Construction, has reported drywall problems, according to the Business Times. Most of those complaints center on its Keys Gate community in Homestead.

As we reported last week, Florida’s Lieutenant Governor has also said his Fort Meyers home, built by Aubuchon Homes, was built with defective Chinese drywall.

http://www.newsinferno.com/archives/4700


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:19 PMPost a Comment (0)

Faulty Chinese drywall causes corrosion, federal study says
November 23rd, 2009 1:18 PM

Faulty Chinese drywall causes corrosion, federal study says

Initial findings from a study of 51 homes by the Consumer Product Safety Commission links corrosion in homes with Chinese drywall to the imported product, the agency said Monday.

Several federal agencies have been investigating complaints from thousands of homeowners -- many in Florida -- whose homes were built with Chinese drywall who have complained that copper tubing in their air conditioning units and electrical wiring have corroded, their homes smell like sulfur and they are having trouble breathing.

Until now, the government had not made a direct link between the complaints and the import.

But in a report Monday, the federal government said, ``There was a strong association between the problem drywall, the hydrogen sulfide levels in homes with that drywall, and corrosion in those homes.''

The agency said it is still investigating a link between health problems and emissions from the drywall.

They studied homes in Florida, Louisiana, Virginia, Alabama and Mississippi. Many new homes were built in those state in the past decade following destructive hurricane seasons and market-driven building booms.

To date, the CPSC has received 2,091 complaints reports from residents in 32 states, the District of Columbia and Puerto Rico who believe their health symptoms or the corrosion of certain metal components are related to Chinese drywall.

http://www.miamiherald.com/news/breaking-news/story/1347888.html


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:18 PMPost a Comment (0)

Chinese drywall concern in Florida rises rapidly on Sen. Bill Nelson's priority list
November 23rd, 2009 1:13 PM

Chinese drywall concern in Florida rises rapidly on Sen. Bill Nelson's priority list

BillnelsonAP Wake up and good morning. The focus on Chinese drywall -- the kind that apparently corrodes air conditioning systems and metal in homes where it is found, and in some cases provokes respiratory problems with residents -- is shifting from Florida to Washington. Hearings held last week and growing interest in the subject by such U.S. senators as Bill Nelson of Florida and Mary Landrieu of Louisiana suggest federal pressure to assign blame and seek a remedy of this mess is only beginning. Here's a Q&A on where some of the issues stand. (Nelson photo by AP.)

Nelson and Landrieu, both Democrats, had filed a budget amendment to help fund the expedited testing of drywall in homes, but the request was derailed in an unrelated procedural hurdle. Senate Appropriations Committee chairman Sen. Daniel Inouye of Hawaii told Nelson he would direct the Consumer Product Safety Commission (which Nelson says has been dragging its feet) to use more than $2 million of its budget for extensive drywall testing. (Here's a May 1 letter from CPSC acting chairman Nancy Nord to Sen. Nelson outlining the agency's plan for investigating the drywall matter.)

Nelson, it seems, has decided to make the resolution of the drywall problem one of his pet issues for now, much to the delight of those Florida homeowners who have either fled their homes for health reasons or, after trying to sell affected homes, find there are no interested buyers. Nelson's indicated this could be a bigger problem for Florida than anything we’ve seen since the hurricanes.

Wrote the Sarasota Herald Tribune: "Suffice it to say, a lot has changed since January, when questions about tainted drywall were generally met with blank stares in Congress."

Around Florida, the drywall drumbeat continues. In today's Scripps Howard newspapers dotting Florida's "treasure coast" near Jupiter and Stuart, here's what columnist Anthony Westbury wrote:

"I interviewed a Port St. Lucie couple who’ve been forced to leave their dream home because of fumes and toxins they say are given off by their wallboard. I visited an empty foreclosed home where all the copper wiring and pipes had turned black and the air reeked so badly of sulfur it was difficult to breathe. I talked with local contractors who say there are similar cases all over the Treasure Coast."

-- Robert Trigaux, Times Business Columnist


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:13 PMPost a Comment (0)

Consumer Product Safety Commission debuts Drywall Information Center
November 23rd, 2009 1:13 PM

Consumer Product Safety Commission debuts Drywall Information Center

Drywallmapcpsc Better late than never. The Consumer Product Safety Commission has launched a new Drywall Information Center to help homeowners keep track of the agency's investigation into toxic drywall manufactured in China. The center also has information that can help consumers determine if their homes were built with the contaminated product and can take their complaints.

This map is part of that CPSC information center on drywall showing states (in blue) where defective drywall has been reported. To date, the CPSC says it has received over 365 reports from residents in 18 States and the District of Columbia who believe their health symptoms or the corrosion of certain metal components in their homes are related to the presence of drywall produced in China.

Who has defective drywall? According to the CPSC, consumers largely report that their homes were built in 2006 to 2007, when an unprecedented increase in new construction occurred in part due to the hurricanes of 2004 and 2005.Common features of the reports submitted to the CPSC from homes believed to contain problem drywall have been:

Consumers have reported a "rotten egg" smell within their homes.
Consumers have reported health concerns such as irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infection, and asthma attacks.
Consumers have reported blackened and corroded metal components in their homes and the frequent replacement of components in air conditioning units.

-- Robert Trigaux, Times Business Columnist


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:13 PMPost a Comment (0)

In rising Chinese drywall tide, Florida insurers invoke 'pollution' exclusions
November 23rd, 2009 1:12 PM

In rising Chinese drywall tide, Florida insurers invoke 'pollution' exclusions

Steverawlsbutlerpappasdrywall Wake up and good morning. The trauma of tainted Chinese drywall -- its rotten egg stink, its corrosion of metals in homes and its respiratory irritations -- is moving rapidly forward. After causing a stir among federal legislators in recent months, the drywall controversy now is the hot topic among lawyers and insurance companies.

That's when things start to get serious. Last week at a "Chinese drywall litigation conference" drew 300 attorneys and consultants to Orlando. One theme that emerged: Affected residents turning to their homeowners insurance policies for help after discovering they are victims of tainted drywall. According to coverage in the Sarasota Herald Tribune, insurers are starting to deny homeowners' drywall claims based on something called a "pollution exclusion." It's designed to shield insurance companies from unexpected environmental hazards and has grown so broad that in some states they can be interpreted to cover almost anything related to chemicals, regardless of the source.

Tampa attorney Steve Rawls (see photo) with the Butler Pappas law firm, told the litigation conference that Florida is a poor place for homeowners to argue the "pollution" issue. According to the Herald Tribune, Rawls said that while some courts in other states have restricted the ability to cite "pollution" as a reason to deny coverage, Florida has not. Stated Rawls:

"In Florida, insurers are able to rely on the courts to support them much more so than in other states."

Gee, who would have guessed?

So if lawsuits don't work, there's always Plan B. In this case, some real estate owners are experimenting with a possible scientific way to neutralize the sulfur-like gas from Chinese drywall without tearing up homes. In Fort Myers, Grosse Pointe Developers and BBL Builders teamed up with Sabre, a company specializing in cleaning contaminated buildings, to fumigate a property using chlorine dioxide.

Did it work? It's too early to tell but there's some local coverage (here and a more in-depth Fox video report here) of the initial treatment. We'll stay tuned.

-- Robert Trigaux, Times Business Columnist

http://blogs.tampabay.com/venture/chinese-drywall/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:12 PMPost a Comment (0)

Lennar Homes puts tainted drywall price tag at about $100,000 per home
November 23rd, 2009 1:11 PM

Lennar Homes puts tainted drywall price tag at about $100,000 per home

DrywallchineseAPJPatCarter Wake up and good morning.

More news on the tainted Chinese drywall front, which has spread from a smelly, health-suspect condition inside many new homes built in Florida to a multi-state investigation and federal debate over what to do with this mess.

The defective drywall, imported into the United States during a building materials shortage in 2004-2007, emits sulfur compounds that corrode air conditioning coils, and damages other metals on items inside the home, including jewelry, chrome, silverware and copper wiring inside electrical outlets.

In photo from April, Mary Ann Schultheis displays the black dust covering the copper tubes in the air conditioner in the second story of her home in Parkland, Fla. (AP photo: J. Pat Carter.)

Here are the latest highlights:

* Lennar Homes has identified about 400 homes with Chinese drywall that were delivered in Florida, mainly in its 2006 and 2007 fiscal years. The company's set aside just under $40 million to repair the homes, which puts the average cost per house at close to $100,000. That represents 2.1 percent of the homes delivered in Florida and 0.5 percent nationally by the Miami-based builder.

“Based on its efforts to date, the company has not identified defective Chinese drywall in homes delivered by the company outside of Florida,” Lennar says in a recent SEC filing. “The company is currently unable to reasonably estimate its future exposure relating to defective Chinese drywall. However, the company is continuing its investigation of homes it delivered during the relevant time period in order to determine whether there are additional homes, not yet inspected, with defective Chinese drywall and resulting damage. The outcome of the company’s inspections might require it to increase its warranty reserve in the future.”

Here's more detail at the Fort Myers News Press. And the Wall Street Journal notes the U.S. Consumer Product Safety Commission said in a letter to four U.S. senators last week that it has received more than 600 complaints related to the drywall issue from 21 states and the District of Columbia. Most of the reports are from Florida, Louisiana and Virginia.

* The Wall Street Journal also reports that U.S. and Chinese officials are cooperating in efforts to sample drywall and indoor air quality in affected homes to determine what may have gone wrong. The U.S. Environmental Protection Agency in May reported that preliminary sampling turned up sulfur in some Chinese drywall. The EPA tests also found strontium, a metal, at higher concentrations than in U.S.-made drywall. The Consumer Product Safety Commission, a federal agency that regulates many household products, has opened an investigation into the safety of imported drywall and posted information on its Web site.

* Senator Bill Nelson, D-Fla., says homeowners dealing with damages associated with Chinese drywall may qualify for special tax deductions through the Internal Revenue Service. These homeowners may be able to claim a casualty loss. Read more here and here.

-- Robert Trigaux, Times Business Columnist

http://blogs.tampabay.com/venture/chinese-drywall/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:11 PMPost a Comment (0)

Tainted Chinese drywall: regulators, judges, lawyers moving into fast(er) lane
November 23rd, 2009 1:10 PM

Tainted Chinese drywall: regulators, judges, lawyers moving into fast(er) lane

ChinesedrywallapParklandmaryannschultheis Wake up and good morning. With thousands of houses in Florida and other states tainted by nasty sulfur-emitting and corrosive drywall from China, the "what to do about it" effort seems to be entering a second phase. About time. That liability explains why Florida houses with tainted drywall are selling for as little as $19,000 in Cape Coral. (AP photo of Mary Ann Schulteis's South Florida home with corroded copper tubes in air conditioning.) Consider:

1) U.S. Consumer Product Safety Commission officials plan to visit several sites in China later this month to investigate problems with imported drywall that was manufactured there. Agency officials also have started indoor air sampling in 50 homes and visited a synthetic drywall manufacturing plant in Florida as part of their investigation. Chinese officials earlier accompanied U.S. officials in visits to some affected homes in Florida and Louisiana, the Wall Street Journal reports. More details here and here.

2) New legislation could make it easier for homeowners with defective Chinese drywall to take the manufacturer to court, the Miami Herald reports. The Foreign Manufacturers Legal Accountability Act of 2009 attempts to make it easier to bring foreign companies before an American court. Legal analysts say current laws contain so many loopholes that foreign manufacturers of shoddy equipment are rarely penalized by the legal system. The bill would require foreign manufacturers to retain a business representative in at least one state where it does significant business and who could be served with a lawsuit. More details here.

3) A federal judge in New Orleans wants to fast-track a handful of cases for trial. According to the Daily Business Review, the first of these bellwether lawsuits could be tried by the end of the year, a timetable that encourages homeowners to think settlement. In contrast, drywall maker and defendant Knauf Plasterboard Tianjin welcomes home inspections and is investigating "practical solutions" but denies any health effects from its drywall. About 600 tainted Chinese drywall lawsuits have been consolidatedin multidistrict litigation under U.S. District Judge Eldon E. Fallon for pretrial issues. With the help of plaintiff and defense steering committees, Fallon will select five cases to test the waters. More details here.

4) Couldn't resist this tale from Port St. Lucie on Florida's east coast. Tainted drywall homeowner Larry Kosakowski got so frustrated that he called the White House and left a message asking President Obama to listen to his plight. "My whole reason is awareness," said Kosakowski. "And what I'm really hoping for out of the federal government is to urge the banks to cooperate." He said he will soon have to leave while the drywall is remediated. He said like many Floridians he can't afford his mortgage and rent. The full story is here.

--- Robert Trigaux, Times Business Columnist http://blogs.tampabay.com/venture/chinese-drywall/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:10 PMPost a Comment (0)

Homebuilders' woe: Even Fla. Lt. Gov. Kottkamp's suing over Chinese drywall
November 23rd, 2009 1:10 PM

Homebuilders' woe: Even Fla. Lt. Gov. Kottkamp's suing over Chinese drywall

JeffKottkamp




UPDATE: Sept. 3: Builder Hovnanian Enterprises Inc. said its exposure to the Chinese drywall issue is not material to earnings, and it didn't take any additional charges in its fiscal third quarter related to the issue. It has had a "whopping total" of five cases in Florida, executives said in the results call Thursday, reports the Dow Jones wire.

Wake up and good morning. Here's an unexpected poster child for the slogging effort to deal with toxic Chinese drywall found in thousands of homes in Florida and elsewhere. Our very own lieutenant governor.

Florida lieutenant governor and North Fort Myers resident Jeffrey Kottkamp (foreground in photo with Gov. Charlie Crist) and wife Cynthia filed a federal lawsuit Monday against Knauf Gips KG and Knauf Plasterboard Tianjin Co. LTD. The claim? The companies "manufactured, processed, distributed, delivered, supplied, inspected, marketed and/or sold" defective drywall that's inside their home.

According to the Fort Myers News-Press, the couple seeks more than $75,000 in damages because they allege the drywall corroded air conditioning coils and other interior fixtures and has caused family members to have allergic reactions, coughing, infections, irritation and breathing problems. Here's the News-Press story.

That ought to rekindle at least some political fire on the drywall fiasco. The Wall Street Journal says analysts are closely eyeballing builders like Hovnanian Enterprises Inc. -- which reports fiscal third-quarter results today -- for signs of exposure to drywall liability. It's not Hovnanian, per se, that's exposed but the Florida homebuilding business it acquired.

As the housing market peaked in 2005, Hovnanian snapped up the assets of First Home Builders of Florida. The cash deal, says the Journal, gave Hovnanian the top market position in what was then a booming Fort Myers-Cape Coral region.

Alas, some 1,200 drywall complaints have been received from 24 states, says the U.S. Consumer Product Safety Commission, which is leading a federal investigation (here's an August 2009 update on the agency's investigation). But more than three-quarters come from Florida, with many cases in the Fort Myers area.

The Journal story also offers a quick update on other builder's potential exposure:

* Miami-based Lennar Corp. has confirmed that about 400 homes it built in Florida, mostly during its 2006 and 2007 fiscal years, have defective drywall. The company has set aside $40 million to repair these homes and has said it believes it will recover $20.7 million from insurance.

* WCI Communities, a Florida-based developer emerging from Chapter 11 bankruptcy proceedings, estimates it has more than 160 potential cases. Its reorganization plan includes the formation of a trust to administer and satisfy homeowners' Chinese drywall claims. WCI will contribute $900,000 to administer the fund. In court filings, WCI estimates that its claims could run as high as $97.3 million.

* D.R. Horton Inc. identified 75 homes in Florida and Louisiana that could have the problem. It set aside $6 million for repairs.

* Ryland Group Inc. confirmed it has between 50 and 60 homes in three Fort Myers communities, with repair costs estimated at $4.5 million to $6 million.

* Beazer Homes USA Inc. has disclosed drywall problems at 30 homes in southwest Florida.

"The Kottkamps are just one of many of our clients - about 700," Scott Weinstein of Fort Myers, the Kottkamps' attorney, told the News-Press. Weinstein is one of 13 attorneys appointed by U.S. District Judge Eldon Fallon in New Orleans to spearhead the efforts of plaintiffs in drywall cases.

The first of the drywall cases may go to trial early next year, but Weinstein doesn't know if the Kottkamps' case will be one of them Said the attorney: "They're not being treated differently."

-- Robert Trigaux, Times Business Columnist

http://blogs.tampabay.com/venture/chinese-drywall/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:10 PMPost a Comment (0)

As Chinese drywall horrors and costs mount, Washington waffles
November 23rd, 2009 1:08 PM

As Chinese drywall horrors and costs mount, Washington waffles

CPSCchairineztenenbaum Wake up and good morning. After so many months of mounting evidence, families effectively banned from their homes for health reasons, homes so tainted that they can't be resold, litigation, federal and state investigations and general outcry... you'd think we'd finally be making some progress on fixing the problems caused by the use by builders of sulfur-spewing, corrosion-inducing Chinese drywall in thousands of homes built in or around 2005-2006 in Florida and other states.

Then comes our startlingly wishy-washy federal product-safety regulators, apparently led by Chief Waffler and Consumer Product Safety Commission chair Inez Tenenbaum (see photo). While saying Thursday that their sampling of Chinese drywall emits higher concentrations of sulfur gases and strontium than U.S.-made product, the regulators found no evidence so far that the emissions were to blame for health problems and metal corrosion reported by at least 1,900 U.S. homeowners. Here's the complete Wall Street Journal/Dow Jones story.

An abundance of scientific caution? Just an unfortunate coincidence? Or perhaps a weak-spined federal accommodation to China? You decide.

There's some serious liability lurking here. Consulting firm Towers Perrin estimates that the tab for drywall damage could range from $15 billion to $25 billion, and housing experts have estimated it costs about $100,000 per average-sized home to pull out bad drywall and replace corroded electrical wiring and appliances. No wonder housing developments in Florida (see AP photo of sign) are going out of their way to advertise "No Chinese Drywall Here."

ChinesedrywallnochinesedrywallsignAP As the Dow Jones story notes, the Consumer Product Safety Commission's "inconclusive preliminary report promises to continue the uncertainty over who will pay for damage claimed by homeowners in 30 states, the District of Columbia and Puerto Rico—China, the home builders, distributors, insurers or the U.S. government." Federal studies on the health and corrosive effects of the drywall are continuing. The story adds:

"Before CPSC Chairman Inez Tenenbaum visited China earlier this month for a U.S.-China summit on consumer product safety, she said she planned to ask Chinese officials whether they were prepared to help pay for any drywall damages. But the agency has since sidestepped answering whether Ms. Tenenbaum discussed the cost issue with Chinese officials. A CPSC spokesman said only that Ms. Tenenbaum, in private and public meetings with senior Chinese officials, stated her expectation that Chinese companies 'should do what is just and fair' and accept responsibility if any of their products are at fault.

"A spokesman for the Chinese Embassy said he wasn't aware of any agreement between the U.S. and China on payment for any damages."

Senbillnelson Sen. Bill Nelson of Florida— the state that has seen the majority of homeowner complaints — told Dow Jones that the CPSC results "defy common sense," and added that he is frustrated by "the slowness of the testing." Nelson (in photo) sent a letter to President Barack Obama Thursday asking him to raise the issue of contaminated drywall when he meets with Chinese President Hu Jintao next month in Asia.

Why do I have a growing suspicion this 5K of fingerpointing is about to become a bureaucratic marathon?

Here's the inside joke. President Obama replaced acting CPSC chairwoman Nancy Nord last spring after Sen. Nelson accused her agency of doing too little, too late to prevent tainted imports of Chinese drywall from causing health problems for homeowners in Florida and other states.

Whew. Glad we got that fixed.

In the meantime, feast on this NPR story headlined Toxic Chinese Drywall Creates A Housing Disaster or this AP story headlined Insurers Dropping Chinese Drywall Policies.

-- Robert Trigaux, Times Business Columnist

http://blogs.tampabay.com/venture/chinese-drywall/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:08 PMPost a Comment (0)

Synovus Bank, struggling to fix a heavy load of bad loans, sees shares tumble to year low
November 23rd, 2009 1:07 PM

Synovus Bank, struggling to fix a heavy load of bad loans, sees shares tumble to year low

Synovuslogo There's no lack of banks struggling in this economy. Some are in worse shape than others. Synovus Financial Corp., parent of Synovus Bank, based in Georgia but with more than two dozen branches sprawled along Florida's gulf coast in Tampa Bay south to Naples, is one of them. Synovus shows more and more signs of distress, including a 52-week low on its stock today that's down 10 percent and hovering near $1.60. Shares of the company have fallen 57 percent in the last three months.

Last Friday, Synovus felt compelled to issue a statement saying it was not under the thumb of bank regulators (always a bad sign for banks) and that its capital position was okay. Here's the statement:

"In response to recent questions, Synovus Financial Corp. (NYSE: SNV) today reaffirms that it is not under a regulatory requirement to raise additional capital. The company’s capital position remains strong. Synovus is considered well-capitalized by regulatory standards and its ratios compare favorably to those of its peers. As of September 30, 2009, Synovus’ Tier 1 Capital Ratio was 10.48 percent compared to the regulatory minimum of 6.00 percent to be considered well-capitalized. The company’s Total Risk-Based Capital Ratio of 13.84 percent is well above regulatory minimums of 10.00 percent."

RichardEAnthonyCEOSynovus And here's what Synovus Chairman and CEO Richard Anthony (in photo) added in a comment:

"Synovus continues to manage credit in a proactive and aggressive manner. Given our strength of capital combined with our continued focus on disposing of non-performing assets and improvements in core operating results, we remain confident in our belief that we have the opportunity to achieve profitability during 2010."

So that's what the bank is saying. What are others saying?

* They point to the last three quarters of losses -- heavy losses -- by Synovus. That includes a net loss for the third quarter of 2009 of $423.7 million, or $1.27 per common share; a net loss for the second quarter of 2009 of $586.9 million, or $1.82 per common share, and a first-quarter 2009 loss of $136.7 million, or 46 cents per common share. That's more than $1 billion lost in less than one year.

* Last week, Synovus shares tumbled to their lowest point in more than 17 years -- though that figure was eclipsed today with a new low. Last week's decline came after a Morgan Keegan analyst downgraded the regional bank, saying government pressure for banks to build capital reserves as well as ongoing credit issues will pressure the stock. Analyst Robert Patten cut his projection for 2010 to a loss of $1.10 per share from 75 cents per share because of the expected cost of bad debt provisions.

* Synovus has been one of the more aggressive sellers of bad loans, a strategy to dump a weak balance sheet to raise money and lower the bank's high percentage of bad assets. The bank shed some $339 million worth of similarly troubled real-estate development loans and mortgages in the third quarter. The company has said it plans on selling another $261 million by year end. Read more here.

Synovus has its recovery work cut out for itself. Whenever a larger bank like Synovus watches its stock sink under $2, it's time to pay attention. We'll keep track of its progress.

--Robert Trigaux, Times Business Columnist

http://blogs.tampabay.com/venture/commercial_real_estate/


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:07 PMPost a Comment (0)

Is RadioShack unidentified Fortune 500 firm eyeing Tampa for headquarters relocation?
November 23rd, 2009 1:04 PM

Is RadioShack unidentified Fortune 500 firm eyeing Tampa for headquarters relocation?

RadioshackhqAP Wake up and good morning. Is RadioShack Corp. really the Fortune 500 company that's allegedly in relocation play and looking at Tampa? Word is it may be a competition among Tampa, Charlotte, N.C., Nashville, Tenn., and Albuquerque, N.M. (AP photo: RadioShack headquarters in Fort Worth, Texas.)

Buzz about a potentially big corporate relocation — we're talking a 1,700-employee headquarters move here, folks, not some division or back-office operation — began a few weeks ago.

As these Corporate Kabuki Theater events unfold, an "unidentified" company comes calling to a metro area, in this case Tampa Bay, where economic development groups and commercial real estate experts pitch the visitors on the merits of the area, the available real estate options, the relative costs of being here versus some other metro area, the quality of life offerings and ... of course ... what economic incentive package the state-county-city might be able to toss their way.

Tampa's economic development chiefs assign the "unidentified" company a project name and then everybody waits. And waits. To see if Tampa Bay makes the cut for another round of more serious negotiations.

Perspective: Fortune 500 headquarter relocations are quite rare and extremely so when it comes to a company moving into Florida. The only one I can recall in recent years is the 2003 decision by Fidelity National Financial to relocate from Santa Barbara, Calif., to Jacksonville, citing lower costs and more expansion potential.

Here's a peek at RadioShack:

It's got 35,000 employees, about 4,470 company-operated stores, 1,300 dealer outlets, nearly 450 wireless phone kiosks throughout the U.S. and a footprint of approximately 2,500 square feet in an average store. A majority of its stores are located in strip shopping centers in suburban markets that exceed 500,000 people and it has about 200 company-operated stores in Mexico.

Here in Tampa Bay, tight-lipped county and economic development folks are not talking, but we do know this much. The project name is apparently Project Prince and the Tampa Bay Business Journal did float the name of RadioShack in its print edition last week. It buried the story inside the paper, perhaps as a wise acknowledgment that, while publishing the RadioShack name, there was no confirmation beyond commercial real estate street chatter.

Now the media momentum begins. The Dallas Morning NewsRadioShack is based (for now) in Fort Worth, Texas — published this story today, for the first time raising a cowboy alarm that one of their own companies may be movin' on. The story explains RadioShack needs to find a new headquarters because its five-building, 900,000-square-foot campus along the Trinity River in downtown Fort Worth was sold to Tarrant County College in 2008, and RadioShack was given a rent-free lease until 2011. Says the Morning News:

"Now that RadioShack is beginning an active search, there are published reports of the company's possible interest in Tampa, Fla., Charlotte, N.C., Nashville, Tenn., and Albuquerque, N.M.

Florida's Tampa Bay Business Journal reported that developers there pitched proposals in late October to an unidentified Fortune 500 company looking for as much as 350,000 square feet for a corporate headquarters. It said the city's commercial real estate sector was abuzz with speculation identifying the company as RadioShack."

Of course, RadioShack says it does not comment on rumors or speculation. The consumer electronics chain has two years left on its lease, with an option to extend through June 2013.

What if RadioShack actually leaves Forth Worth? "It would be a big blow for the Dallas-Fort Worth area, which touts its success in attracting corporate relocations. And Texas regularly places at the top of rankings for friendliest business climates," the Morning News states.

In this NBC Dallas-Fort Worth affiliate TV report, Daniel Short, a professor at Texas Christian University's Neeley School of Business, says the rumor of a RadioShack relocation started in Tampa Bay (meaning the TBBJ story) but called it "plausible." He added companies typically begin to explore their options about 18 months out, and said that local Texas chambers of commerce predictably are doing all they can to ensure RadioShack stays in the area. (The TV report offers good views of RadioShack's headquarters.)

If this entire scenario is true, well — good luck, Tampa Bay. This is a regional economy that could truly use an injection of good business news of such magnitude. It would be a remarkable feather in the cap of the entire region. RadioShack generates just under $1 billion in quarterly revenues lately and boasts a market value of about $2.4 billion.

-- Robert Trigaux, Times Business Columnist


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:04 PMPost a Comment (0)

RadioShack Headed to Florida?
November 23rd, 2009 1:03 PM

RadioShack Headed to Florida?

We haven’t read much lately about big retail companies moving their headquarters, so we found reports about RadioShack leaving the Fort Worth area interesting. One area the company is supposedly considering for a new home is Tampa, FL.

Also under consideration are Charlotte, NC; Nashville, TN; and Albuquerque, NM. Spokespeople for the retailer aren’t talking about the possible move.

The Shack, which has 1,700 employees, sold its 900,000-square-foot Fort Worth campus to a German firm after the retailer constructed the facility in 2005. A college then bought the complex last year and is giving RadioShack free rent through 2011.

The potential move comes at an interesting time for the 4,470-unit chain. RadioShack’s recent sales and earnings were down, but analysts upgraded the retailer’s stock after it announced plans to sell iPhones.

Additionally, it’s rebranded itself as The Shack and has cut back its store based over the years. Would a new headquarters refresh the chain?

http://globestcounterculture.wordpress.com/2009/11/16/radioshack-headed-to-florida/?sector=florida


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:03 PMPost a Comment (0)

Highwoods Buys 4200 Cypress Building
November 23rd, 2009 1:02 PM

4200 Cypress
TAMPA, FL-Highwoods Properties Inc. has further solidified its position as the dominant office landlord in the Westshore submarket, purchasing the 4200 Cypress building near Interstate 275. The Raleigh, NC-based REIT expects the total investment to be $24.7 million, including planned improvements to the 10-story, 220,000-square-foot class A building that opened in 1989.

The 10-story building at 4200 W. Cypress St. is 93% occupied and currently generates annualized net operating income of approximately $3.1 million, according to Highwoods. Ed Fritsch, Highwoods president and CEO, stated in a release that the building “meets our criteria of fortifying our position in key infill locations.”

Highwoods now owns or has interests in 14 office buildings in Tampa’s Westshore submarket, encompassing 2.1 million square feet. The properties are at least 90% occupied on average.

In a related note, Highwoods has sold 39,700 square feet of retail space plus two acres in Winston-Salem, NC for $9 million. The fully occupied properties include a 30,000-square-foot build-to-suit development for HHGregg completed last year, as well as a ground lease to CVS. So far this year, Highwoods has sold $78 million of non-core assets at an average cap rate just above 8%.

http://www.globest.com/news/1542_1542/florida/182275-1.html?sector=florida


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 1:02 PMPost a Comment (0)

Peer to Peer Lending, Social Lending: Banking of the Future
November 23rd, 2009 12:48 PM

Peer to Peer Lending, Social Lending: Banking of the Future

Peer to Peer LendingA few weeks ago I came across a new way to invest and borrow money that I find absolutely fascinating. No, it's not Madoff's newest ponzi scheme or some guaranteed results program. It's called peer to peer lending, and after much litigation it was only very recently made legal under SEC laws, however, currently only residents of certain states can participate (see below).

Social lending is not a new idea, can be traced back to 1750 BC by the ancient Babylonian King Hammurabi. Since recording data to stone tablets is a bit outdated, now we use the power of the Internet to enable people like you and me to lend and borrow money at our own discretion. The notion is simple, yet powerful -- both large and small banks should take notice.

You down with O.P.M. (other people's money?)

Currently there are two major players in the American peer to peer lending arena. LendingClub.com & Prosper.com. In 2008, Prosper had a debacle with the SEC for selling unlicensed securities (whoops) but has since settled the case and is originating loans again. In October 2009, Lending Club originated over $6 million in loans while Prosper originated $2 million.
(Source: American Banking News).

Combined, these companies and their social investors have originated over $251 million dollars in unsecured personal loans since 2005!

As a lender, you are investing in Notes. Each Note corresponds to a portion of a consumer loan, and gives the right to receive payments received under that consumer loan, minus a 1% service charge. Most Notes are purchased for a 3 year time period at a fixed rate of return.

As a borrower, one is able to borrow a minimum of $1,000 and up to $25,000. Each borrower is assigned a credit rating, based on credentials assigned by the lending site you are with (more information on this below). Each borrower will have a story as to why they are borrowing money and what they intend on using it for. Some are consolidating debt, some are starting a new business, some are renovating houses, getting married or buying a car. Lenders are free to ask the borrower questions about the use of their money and even ask for proof of documentation of finances, cash flow, business operations, etc.

You decide who and what you want to take a risk on.

Interest rates are determined by a bidding process. Lending peers bid on the lowest rate of return they would be willing to lend their money at for each borrower's case and credit rating. Because of this competition, the borrowers get the absolute best interest rate possible as a gauge in confidence in the borrower's rating and use of the money. As a matter of fact, borrowers are currently getting better rates on unsecured personal loans than they may through a bank!

Lending Club Rate of 
Return

Statistics from Prosper & Lending Club

Keep in mind that Prosper was the first lending site to the market, thus they have more originations. Also note that Lending Club has tighter credit restrictions for borrowers than Prosper does. Because of this, you will notice that Lending Club has a lower loss rate, and a slightly better rate of return.

Prosper.com:
$184,000,000 - Dollars Originated Since 2005
38,381 - Loans Originated
$4,794.00 - Average Loan Amount
15.12% - Average Yield
5.60% - Average Loss
9.52% - Average Rate of Return
(Source: Propser Marketplace Performance)

LendingClub.com:
$67,710,000 - Dollars Originated Since 2005
7,458 - Loans Originated
$9,078 - Average Loan Amount
12.58% - Average Yield
3.05% - Average Loss
9.67% - Average Rate of Return
(Source: Lending Club Statistics)

IMPORTANT - You can be a lender only if you reside in one of these states (as of 11/23/09):

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

The following states are not yet eligible: North Dakota, Iowa & Maine.

Trading Notes with Other Investors

Both Propser and LendingClub have recently integrated a Note trading platform for lenders to buy and sell debt notes to other investors. Both sites conduct trading through FOLIOfn, member FINRA/SIPC. Only Notes that were issued after October 12, 2008 can be traded on the Trading Platform.

Peer to Peer 
Lending Statistics

-------------------------------------------------------------------------------------------------------------

http://activerain.com/blogsview/1349278/peer-to-peer-lending-social-lending-banking-of-the-future


Posted by Jennifer Stepanek, P.A. on November 23rd, 2009 12:48 PMPost a Comment (0)

U.S. Mortgage Delinquencies Reach a Record High
November 20th, 2009 9:33 AM

The economy and the stock market may be recovering from their swoon, but more homeowners than ever are having trouble making their monthly mortgage payments, according to figures released Thursday.

Marcio Jose Sanchez/Associated Press

Homeowners needing mortgage advice and revisions flocked to an event with the Neighborhood Assistance Corporation of America at the Cow Palace in Daly City, Calif., last month.

Justin Sullivan/Getty Images

A couple waits to speak to a financial counselor at an event last month in Daly City, California, aimed at helping people get their mortgages restructured to avoid foreclosure.

Nearly one in 10 homeowners with mortgages was at least one payment behind in the third quarter, the Mortgage Bankers Association said in its survey. That translates into about five million households.

The delinquency figure, and a corresponding rise in the number of those losing their homes to foreclosure, was expected to be bad. Nevertheless, the figures underlined the level of stress on a large segment of the country, a situation that could snuff out the modest recovery in home prices over the last few months and impede any economic rebound.

Unless foreclosure modification efforts begin succeeding on a permanent basis — which many analysts say they think is unlikely — millions more foreclosed homes will come to market.

“I’ve been pretty bearish on this big ugly pig stuck in the python and this cements my view that home prices are going back down,” said the housing consultant Ivy Zelman.

The overall third-quarter delinquency rate is the highest since the association began keeping records in 1972. It is up from about one in 14 mortgage holders in the third quarter of 2008.

The combined percentage of those in foreclosure as well as delinquent homeowners is 14.41 percent, or about one in seven mortgage holders. Mortgages with problems are concentrated in four states: California, Florida, Arizona and Nevada. One in four people with mortgages in Florida is behind in payments.

Some of the delinquent homeowners are scrambling and will eventually catch up on their payments. But many others will slide into foreclosure. The percentage of loans in foreclosure on Sept. 30 was 4.47 percent, up from 2.97 percent last year.

In the first stage of the housing collapse, defaults and foreclosures were driven by subprime loans. These loans had low introductory rates that quickly moved to a level that was beyond the borrower’s ability to pay, even if the homeowner was still employed.

As the subprime tide recedes, high-quality prime loans with fixed rates make up the largest share of new foreclosures. A third of the new foreclosures begun in the third quarter were this type of loan, traditionally considered the safest. But without jobs, borrowers usually cannot pay their mortgages.

“Clearly the results are being driven by changes in employment,” Jay Brinkmann, the association’s chief economist, said in a conference call with reporters.

In previous recessions, homeowners who lost their jobs could sell the house and move somewhere with better prospects, or at least a cheaper cost of living. This time around, many of the unemployed are finding that the value of their property is less than they owe. They are stuck.

“There will be a lot more distressed supply entering the market, and it will move up the food chain to middle- and higher-price homes,” said Joshua Shapiro, chief United States economist for MFR Inc.

Many analysts say they believe that foreclosures, instead of peaking with the unemployment rate as they traditionally do, will most likely be a lagging indicator in this recession. The mortgage bankers expect foreclosures to peak in 2011, well after unemployment is expected to have begun falling.

There was one sliver of good news in the survey: the percentage of loans in the very first stage of default — no more than 30 days past due — was down slightly from the second quarter. If that number continues to decline, at least the ranks of the defaulted will have peaked.

“It’s arguably a positive, but it doesn’t undermine the fact that there are still five or six million foreclosures in process,” Ms. Zelman said.

The number of loans insured by the Federal Housing Administration that are at least one month past due rose to 14.4 percent in the third quarter, from 12.9 percent last year. An additional 3.3 percent of F.H.A. loans are in foreclosure.

The mortgage group’s survey noted, however, that the F.H.A. was issuing so many loans — about a million in the last year — that it had the effect of masking the percentage of problem loans at the agency. Most loans enter default when they are older than a year.

When the association removed the new loans from its calculations, the percentage of F.H.A. mortgages entering foreclosure was 30 percent higher.

The association’s survey is based on a sample of more than 44 million mortgage loans serviced by mortgage companies, commercial and savings banks, credit unions and others. About 52 million homes have mortgages. There are 124 million year-round housing units in the country, according to the Census Bureau.

http://www.nytimes.com/2009/11/20/business/20mortgage.html?partner=rss&emc=rss


Posted by Jennifer Stepanek, P.A. on November 20th, 2009 9:33 AMPost a Comment (0)

Just Listed! 2995 Lake Saxon Drive Land O Lakes, FL 34639
November 19th, 2009 3:46 PM
Header
Header_2
Listings Photo
$299,000.00
2995 Lake Saxon Drive

Land O Lakes, FL 34639


Beds: 4 Rooms: 0
Full Baths: 2 Sq. Ft.: 1962
Garage: 2 Built: 0

Private boat ramp & dock on Lake Saxon, with access to 2 other ski lakes, a fishing lake, & stables...what else could one ask for?
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing here

Posted by Jennifer Stepanek, P.A. on November 19th, 2009 3:46 PMPost a Comment (1)

Just Listed! 402 Layne Place Lutz, FL 33549
November 19th, 2009 3:46 PM
Header
Header_2
Listings Photo
$137,000.00
402 Layne Place

Lutz, FL 33549


Beds: 3 Rooms: 0
Full Baths: 2 Sq. Ft.: 0
Garage: 2 Built: 0

Short Sale! Fabulous price on Lutz home on corner lot. Chain link fencing on 2 sides.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing here

Posted by Jennifer Stepanek, P.A. on November 19th, 2009 3:46 PMPost a Comment (1)

Just Listed! E 123rd Street Parrish, FL 34219
November 19th, 2009 3:44 PM
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Header_2
Listings Photo
$180,000.00
E 123rd Street

Parrish, FL 34219


Beds: 4 Rooms: 0
Full Baths: 2 Sq. Ft.: 2180
Garage: 2 Built: 2006

Almost new home ready for you to move into!
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing here

Posted by Jennifer Stepanek, P.A. on November 19th, 2009 3:44 PMPost a Comment (1)

Just Listed! 6056 Sweet William Terrace Land O Lakes, FL 34639
November 19th, 2009 3:43 PM
Header
Header_2
Listings Photo
$156,000.00
6056 Sweet William Terrace

Land O Lakes, FL 34639


Beds: 3 Rooms: 0
Full Baths: 2 Sq. Ft.: 1840
Garage: 2 Built: 2006

Modern home, decorated stunningly.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing here

Posted by Jennifer Stepanek, P.A. on November 19th, 2009 3:43 PMPost a Comment (1)

The Hot Real Estate Spots For 2010
November 18th, 2009 9:11 AM

The Hot Real Estate Spots For 2010

by Charles Feldman on November 18, 2009

Post image for The Hot Real Estate Spots For 2010

Washington, D.C.; San Francisco; Austin, Texas; Boston and good old New York top the list of five projected top real estate markets for 2010, according to The Urban Land Institute.

Washington, says the report from ULI, is where “…major insurers and big banks have taken a long term view and are actually providing financing for new deals.”

In San Francisco, the ULI says “an expanding regional tech industry” should help fuel the sales of apartments, offices and other commercial spaces.

Austin, says the report, will continue to enjoy low state taxes and a pro business climate.

Boston’s apartment vacancies, says the report, are well under 10 percent while “condo/house pricing ‘remains stiff.’”

And, in New York, midtown availability rates, says ULI, are “predicted to skyrocket from mid single digits into the mid-teens…”

Predictions being predictions, who is to say if most, any or none of this will come to fruition? But considering the otherwise bleak real estate landscape out there in many parts of the nation, isn’t this, at least, a pretty cool potential gift to all investors in the year to come?

http://www.biggerpockets.com/renewsblog/2009/11/18/hot-real-estate-markets-2010/


Posted by Jennifer Stepanek, P.A. on November 18th, 2009 9:11 AMPost a Comment (0)

Strong Leonid Meteor Shower Peaks Early Tuesday Morning
November 16th, 2009 11:38 AM

Strong Leonid Meteor Shower Peaks Early Tuesday Morning

The best seats are in Asia, but North American observers should be treated to an above average performance of the Leonid meteor shower, weather permitting. The trick for all observers is to head outside in the wee hours of the morning – between 1 a.m. and dawn – regardless where you live.

The Leonids put on a solid show every year, if skies are clear and moonlight does not interfere. This year the moon is near its new phase, and not a factor. For anyone in the Northern Hemisphere with dark skies, away from urban and suburban lighting, the show should be worth getting up early to see.

"We're predicting 20 to 30 meteors per hour over the Americas, and as many as 200 to 300 per hour over Asia," said Bill Cooke of NASA's Meteoroid Environment Office. Other astronomers who work in the nascent field of meteor shower prediction have put out similar forecasts.

Urban dwellers and suburbanites will see far fewer, as the fainter meteors will be drowned out by local lights.

Behind the Leonids

The Leonids are created by the comet Swift-Tuttle, which passes through the inner solar system every 33 years on its orbit around the sun. Each time by, it leaves a new river of debris, mostly bits of ice and rock no bigger than a sand grain but a few the size of a pea or marble.

Over time, these cosmic streams spread out, so predicting exactly what will happen is difficult.

"We can predict when Earth will cross a debris stream with pretty good accuracy," Cooke said. "The intensity of the display is less certain, though, because we don't know how much debris is in each stream."

When Earth plows into the debris, the bits hit the atmosphere and vaporize, creating sometimes dramatic streaks of light and the occasional fireball with a smoky-looking trail that can remain visible for several minutes.

The Leonid stream is moving in the opposite direction of Earth, producing impact speeds of 160,000 mph (72 kilometers per second) – higher than many other meteors.

"Such speeds tend to produce meteors with hues of white, blue, aquamarine and even green," says Joe Rao, SPACE.com's skywatching columnist.

How to watch

The best viewing will be in rural areas. Get out of town if you can. If you have local lights, scout a location in advance where the lights are blocked by a building, tree or hill.

Dress warmly, and take a blanket or lounge chair so you can lie back and scan as much of the sky as possible. "At this time of year, meteor watching can be a long, cold business," Rao reminds people.

Leonids can appear anywhere, but if you trace them back, they all point to a hub, or radiant, in the constellation Leo – hence the name.

Give your eyes 15 minutes to adjust to the darkness. Then give the show at least a half-hour. The hourly rates stated above typically come in bursts, with lulls that may test your patience. No special equipment is needed. Telescopes and binoculars are of no use because meteors move too quickly.

When to watch

Earth will pass through one of the denser debris streams at around 4 a.m. EST (1 a.m. PST) Tuesday. If you have only an hour or less to watch, center it around this time. Leo will be high in the sky for East Coast skywatchers, putting more meteors into view. In the West, Leo will be low in the eastern sky at this time, so fewer shooting stars will be above the horizon, and therefore Western skywatchers should also try to stick it out until daybreak.

Across Europe, the best bet is to watch anytime between 1 a.m. and daybreak local time.

The planet will pass through an even denser stream later, just before dawn Wednesday in Indonesia and China, but that show won't be visible from North America because it will be daytime here.

One truth about the Leonids: They always produce, and they sometimes produce spectacular, unforgettable fireballs.

http://news.yahoo.com/s/space/20091116/sc_space/strongleonidmeteorshowerpeaksearlytuesdaymorning


Posted by Jennifer Stepanek, P.A. on November 16th, 2009 11:38 AMPost a Comment (0)

Just Listed! 21137 Leonard Rd/US 41 Lutz, FL 33558
November 16th, 2009 10:41 AM
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$2,605.00
21137 Leonard Rd/US 41

Lutz, FL 33558


Beds: 0 Rooms: 0
Baths: 0 Sq. Ft.: 2807.00
Garage: 3.0 Built: 2002

Warehouse & Office Space in Lutz/LOL with a/c office & 12x12 roll up doors
This is a new listing that
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If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing at Here

Posted by Jennifer Stepanek, P.A. on November 16th, 2009 10:41 AMPost a Comment (1)

Home Sellers: Top 5 Home Improvement Projects Based on Cost and Return on Investment
November 16th, 2009 10:09 AM

Home Sellers: Top 5 Home Improvement Projects Based on Cost and Return on Investment

gardening


Posted by Jennifer Stepanek, P.A. on November 16th, 2009 10:09 AMPost a Comment (0)

Existing-Home Sales Surge in Many States in Third Quarter, Metro Prices Moderating
November 16th, 2009 10:06 AM

Existing-Home Sales Surge in Many States in Third Quarter, Metro Prices Moderating

monday lead web

RISMEDIA, November 16, 2009—Most states continued to experience rising existing-home sales in the third quarter 2009, with prices moderating in many metro areas, according to the latest survey by the National Association of Realtors®. Total state existing-home sales, including single-family and condo, increased 11.4% to a seasonally adjusted annual rate of 5.30 million units in the third quarter from 4.76 million units in the second quarter, and are now 5.9% above the 5.01 million-unit pace in the third quarter of 2008. Sales increased from the second quarter in 45 states and the District of Columbia; 28 states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C.

Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. “We can’t underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector,” he said. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.”

During the third quarter, 123 out of 153 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains.

The national median existing single-family price was $177,900, which is 11.2% below the third quarter of 2008; the median is where half sold for more and half sold for less. Distressed sales- foreclosures and short sales- accounted for 30% of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes.

“The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” Yun said. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage rose to 5.16% in the third quarter from a record low 5.03% in the second quarter, but was dramatically lower than the 6.32% average rate in the third quarter of 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he is encouraged by recent actions in Congress. “Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine,” he said. “Congress understands the impact of housing on the economy, so consumers who aren’t able to complete a transaction before the end of this month now have a second chance but must have a contract in place by April 30, 2010.”

The biggest sales gain between the second and third quarters was in North Dakota, up 42.3%; followed by Rhode Island which rose 26.5%; and Pennsylvania, up 25.6%. The largest single-family home price increase in the third quarter was in the Cumberland area of Maryland and West Virginia at $122,100, up 19.2% from the third quarter of 2008. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois, where the median price increased 14.3% to $115,600, followed by Oklahoma City, at $144,100, up 9.1% from a year ago.

“The wide range of market performance and reversals around the country, ranging from double-digit gains to double-digit losses in both sales and prices, underscores just how local real estate truly is,” Yun said. “The wide changes and mix of numbers also indicates a market in transition, hopefully to one that is becoming more balanced and stable.”

Median third-quarter metro area single-family home prices ranged from a very affordable $61,400 in the Saginaw-Saginaw Township North area of Michigan to $566,000 in the San Jose-Sunnyvale-Santa Clara area of California. The second most expensive area in the third quarter was San Francisco-Oakland-Fremont at $538,100; followed by the Anaheim-Santa Ana-Irvine area of California at $498,800.

Other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania at $70,700, and Lansing-East Lansing, Mich., at $86,600.

In the condo sector, metro area condominium and cooperative prices- covering changes in 55 metro areas- showed the national median existing-condo price was $178,000 in the third quarter, down 15.4% from the third quarter of 2008. Four metros showed annual increases in the median condo price and 51 areas had declines.

The metros experiencing condo price gains were San Diego-Carlsbad-San Marcos, at $215,100, up 13.3%; followed by the Cincinnati-Middletown area, up 2.0% to $119,700; the Toledo, Ohio, area, where the median price of $130,400 rose 1.7% from the third quarter of 2008; and the Indianapolis area at $114,400, up 0.8%.

Metro area median existing-condo prices in the third quarter ranged from $67,600 in Las Vegas-Paradise, Nev., to $432,800 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was New York-Wayne-White Plains at $297,500, followed by Boston-Cambridge-Quincy at $293,700. Other affordable condo markets include Reno-Sparks, Nev., at $81,300 in the third quarter, and Jacksonville, Fla., at $91,600.

Northeast

Regionally, existing-home sales in the Northeast surged 16.7% in the third quarter to a pace of 930,000 units and are 6.9% higher than a year ago. The median existing single-family home price in the Northeast declined 9.4% to $244,500 in the third quarter from the same quarter in 2008. The best price gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $119,700 rose 4.8% from the third quarter of 2008; followed by Manchester-Nashua, N.H., at $237,600, up 2.6%; and the Pittsburgh area, where the median price rose 1.5 percent to $124,600.

Midwest

In the Midwest, existing-home sales jumped 13.2% in the third quarter to a pace of 1.20 million and are 5.2% above a year ago. The median existing single-family home price in the Midwest was down 5.5% to $150,200 in the third quarter from the same period in 2008. After Davenport-Moline-Rock Island, the next strongest metro price increase in the region was in Cedar Rapids, Iowa, where the median price of $145,700 was 7.6% higher than a year ago; followed by Bismarck, N.D., at $157,200, up 7.5%; and Ft. Wayne, Ind., where the median price rose 6.9 percent to $102,500.

South

In the South, existing-home sales rose 11.3% in the third quarter to an annual rate of 1.97 million and are 5.9% higher than the third quarter of 2008. The median existing single-family home price in the South was $160,000 in the third quarter, down 7.9% from a year earlier. After Cumberland and Oklahoma City, the next strongest price increase in the region was in Shreveport-Bossier City, La., at $152,300, up 8.6% from the third quarter of 2008; Jackson, Miss., at $141,200, up 4.6%; and Durham, N.C., where the median price rose 3.6% to $184,300.

West

Existing-home sales in the West increased 5.6% in the third quarter to an annual rate of 1.19 million and are 4.6% above a year ago. The median existing single-family home price in the West was $224,000 in the third quarter, which is 16.4% below the third quarter of 2008. The best metro price performance in the West was in Yakima, Wash., where the median price of $158,400 rose 2.7% from a year earlier; the Denver-Aurora area at $229,100, up 1.8%; and the Kennewick-Richland-Pasco area of Washington, where the median price rose 0.7% to $172,200.


Posted by Jennifer Stepanek, P.A. on November 16th, 2009 10:06 AMPost a Comment (0)

Just Listed! 22311 River Rock Dr Land O Lakes, FL 34639
November 16th, 2009 9:48 AM
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$209,000.00
22311 River Rock Dr

Land O Lakes, FL 34639


Beds: 4.0 Rooms: 0
Baths: 2.00 Sq. Ft.: 1885.00
Garage: 2.0 Built: 2003

4/2/2 canal front in Lake Padgett Estates. Stunningly decorated. Easy Access to I-75, Dale Mabry, & The Suncoast Expressway.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Jennifer Stepanek, P.A.
JLS Investment Realty
8135068212
www.jlsinvestmentrealty.com


Visit this listing at Here

Posted by Jennifer Stepanek, P.A. on November 16th, 2009 9:48 AMPost a Comment (0)

If you don't stop at Hillsborough red lights, then smile for the camera
November 10th, 2009 10:55 AM

If you don't stop at Hillsborough red lights, then smile for the camera

Hillsborough gives a go-ahead for cameras that catch red-light runners at big intersections.

By Bill Varian, Times Staff Writer
Published March 7, 2008


Red light camera photos provided by American Traffic Solutions, Inc. showing an incident at a traffic light Arnold, Mo.
photo

TAMPA -- The wrong Kodak moment will soon cost red-light runners in Hillsborough County a $125 fine.

County commissioners hopped on the latest trend in traffic policing Thursday when they unanimously agreed to install cameras at major intersections.

Commissioners say they believe the devices will dramatically cut down on catastrophic car accidents.

"I'm convinced that red-light cameras will save lives," said commission Chairman Ken Hagan, who proposed the idea.

The county may bring in extra money, to boot, though commissioners said that is not their motivation, even in these tight economic times.

"That's not the message I want to send," said Commissioner Rose Ferlita.

Hillsborough joins more than 300 cities in two dozen states that use cameras to catch what backers describe as an "epidemic" of red-light runners. Currently, two other Florida cities, Gulf Breeze in the Panhandle and the Orlando suburb of Apopka, have installed them.

Officials in both cities credit the cameras with sharply reducing red-light infractions once drivers get used to their presence. Clearwater, Temple Terrace and Port Richey are heading down the same road, and the state Legislature is looking at making it easier to install them.

With their vote, commissioners dismissed studies that suggest the lights lead to more rear-end collisions, caused when drivers make sudden stops to avoid getting busted.

Mike McCarthy, the county's director of traffic services, said the uptick tends to be short-lived. And he said the accidents tend to be less damaging than the classic T-bone wreck seen when someone runs a red light.

"The hope is that rear-end accidents would be less severe than angle accidents," McCarthy said.

A public hearing on the ordinance drew two speakers, one opposed on safety grounds. The other raised a constitutional concern over how a person might challenge a citation, given that a camera can't answer questions and might malfunction.

"Big Brother will be violating our constitutional right to privacy with no possibility to question the accuser," said Charles Smalling, a Hillsborough County cab driver.

The cameras likely will be installed at 10 to 12 of the county's busiest or most dangerous intersections. Companies that provide the cameras could play a role in selecting the intersections, to ensure they get their money back.

That's because, depending on the contract struck, some companies may provide the cameras for free in exchange for a cut of the fines collected. Or, the Sheriff's Office could decide to pay a flat fee to avoid accusations of profiteering. Thursday's vote clears the Sheriff's Office to seek offers.

Cameras will take images of cars and their license plates, but not the people in them. A Sheriff's Office employee will review video of possible offenders before issuing a citation.

Exceptions will be made in some cases, including for drivers clearing a path for emergency vehicles. Car owners will be cited, but can avoid a fine if someone else was driving their car, provided they identify the driver.

Infractions will be treated like parking tickets rather than a moving violation given when police officers issue red-light tickets. But the citations will be public record, open to insurance company scrutiny.

There will be an initial 60-day warning period after the first cameras are installed. When fines kick in, they will escalate in $75 increments after the second citation, up to a maximum of $500. Appeals will be heard by a hearing officer.

"These are great tools for law enforcement," said Commissioner Kevin White, a former deputy and Tampa police officer. "I don't look at it as Big Brother. If you're doing the right thing, you should have no problem."

http://www.sptimes.com/2008/03/07/Hillsborough/If_you_don_t_stop_at_.shtml


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:55 AMPost a Comment (0)

Red light cameras could be coming to Tampa
November 10th, 2009 10:54 AM

Red light cameras could be coming to Tampa

October 29, 2009 at 9:48 am by Mitch Perry

red-light-camera3

Both local dailies report today that city of Tampa officials are studying the effectiveness of using red light cameras at certain intersections.

Hillsborough County Commissioners approved the concept a year and a half ago, and according to the Tampa Tribune, the first ones are set to be turned on this Friday at the corner of Dale Mabry Highway and Waters Avenue.

Ultimately, there will be 10 such camera installations throughout the County.

Proponents argue that only are such cameras beneficial to public safety, but they also bring in cash in a recessionary time. Although proponents generally argue they’re not doing it for the money, one has to appreciate the candor of Tampa City Council Chairman Thomas Scott, who told the Trib, “We’re in a tight budget crunch. I’d be interested in hearing the proposal.”

The Florida Legislature came close to approving a state law mandating such cameras, but it failed in the closing days of this year’s session. However, there are all indications that it will brought back in 2010.

During the Democratic Attorney General debate earlier this month, State Senator Dave Aronberg criticized the proposal that was floated this year in the legislature, calling it ” motivated by profit.” He also said that he had ’serious’ civil-liberty concerns about the idea.

Previously, the ACLU has gone to court arguing that same thing, and won in the Minnesota Supreme Court.

And several states have laws that ban them outright.

http://blogs.creativeloafing.com/dailyloaf/2009/10/29/red-light-cameras-could-be-coming-to-tampa/


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:54 AMPost a Comment (0)

Make city safer with red-light cameras
November 10th, 2009 10:52 AM

Two years ago Tampa Mayor Pam Iorio scrapped a plan to install red-light cameras on city streets. It was a mistake, but it is encouraging to see the mayor do a U-turn on the decision.

The cameras can save lives and improve traffic flow.

The need for the cameras should be obvious. At almost every busy intersection the running of red lights is flagrant and routine. Drivers race through lights, more concerned with avoiding a slight delay than the lives of other motorists. The running of red lights is a leading cause of accidents in the city.

The city can't afford to post police officers at every dangerous intersection. But it can economically monitor them with cameras.

The cameras continuously film intersections and then automatically report violations, showing the license plates of violators.

The strategy has proved effective in other communities, including New York City, where a red-light camera program reduced violations 73 percent and collisions 41 percent. Cities such as Philadelphia and Seattle have experienced similar reductions.

Some national studies show that while the red-light cameras decrease broadside collisions, they may increase rear-end collisions because drivers slam on the brakes to avoid being filmed.

But such accidents usually diminish as motorists become accustomed to the cameras and change their driving habits. Moreover, rear-enders are not nearly as dangerous as broadside accidents, where there is little metal between the driver and the other car.

It is important that as Tampa pursues a camera program, leaders focus on improving safety, not simply increasing the collection of fines.

There should be a public-education campaign to inform motorists about the cameras, and the city should consider additional moves, such as increasing the length of yellow lights, which can improve traffic flow.

Tampa is behind other communities in recognizing the cameras' value. Orlando and Orange County have programs. The Hillsborough County Commission last year approved an initiative, which is being implemented at busy intersections.

Lakeland, Temple Terrace and Port Richey also are pleased with the success of their programs.

Temple Terrace, which has cameras at two intersections, may add more. Temple Terrace spokesman Michael Dunn told the Tribune's Christian M. Wade that since the cameras were installed, "People are actually stopping for red lights."

Because state law requires an officer to witness an offense before writing a ticket, violators are given a citation under a local ordinance, similar to a parking ticket. Fees are usually $125, but repeat offenders may face fines of $500 or more. The citations can be contested in court, but photographs are difficult to contest.

Some claim the cameras are intrusive, an argument that falls flat during a time when virtually every public action is recorded either by security cameras or personal recording devices.

The city council would have to approve a red-light camera ordinance if the administration moves forward on a proposal. Tampa's leaders should see the benefits of a device that will hold reckless drivers accountable and help bring safety and sanity to city streets.

http://www2.tbo.com/content/2009/nov/09/na-make-city-safer-with-red-light-cameras/


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:52 AMPost a Comment (0)

Tampa might jump on red light cameras bandwagon
November 10th, 2009 10:51 AM

The intersection of Dale Mabry Highway and Waters Avenue is one of the four intersections that the cameras will be tracking.

TAMPA - Two years after abandoning plans to install red light cameras across the city, Tampa officials are taking another look at the controversial traffic control devices.

Following the lead of other Florida communities, Tampa officials are considering the use of the surveillance cameras as a way to crack down on traffic scofflaws and generate revenue for cash-strapped coffers.

"There's been a desire to do this for a long time, particularly from neighborhood groups," said Steve Daignault, the city's public works and utilities administrator. "We seem to have a lot of people running red lights."

Daignault said the city is still in the process of studying the effectiveness of the cameras in other Tampa Bay area communities.

Locally, red light cameras are already in operation in Temple Terrace and Lakeland. Hillsborough County is installing cameras at 10 intersections, including one that is expected to be switched on Friday at Dale Mabry Highway and Waters Avenue.

The city contemplated installing the cameras in 2007, before other communities jumped on the bandwagon, but Mayor Pam Iorio scrapped the plans, citing research on rear-end collisions and concerns about using a private company to issue traffic citations.

City officials wouldn't say why they are now revisiting the red light camera issue or if Iorio has changed her mind.

"The mayor doesn't have enough information yet to make a decision," said Darrell Smith, Iorio's chief of staff. "Red light running is a real problem in the area and we believe that if there's an opportunity to alleviate that problem we should explore it."

Red light cameras would require city council approval, but several council members said they would support the move if the Iorio administration decides to move ahead with it.

"If it helps cut down on accidents, I'd support it," said Councilwoman Linda Saul-Sena. "If people knew they'd be caught on camera, they would be less inclined to run red lights."

Tampa is facing major budget shortfalls and city officials have been searching for ways to cut costs, as well as to generate additional money for a dwindling general fund.

Councilman Tom Scott said the city could use the added revenue from citations.

"We're in a tight budget crunch," he said. "I'd be interested in hearing the proposal."

Daignault said the city hasn't looked at potential intersections for the cameras yet.

Proponents of the high-speed surveillance equipment say it's a proven way to reduce red-light runners. The technology has drawn its share of critics, including Libertarian groups that complain the real purpose of red-light cameras is to generate revenue.

Nationwide, about 250 municipalities use them, but they have been slow to spread in Florida because of laws banning them on state highways and a requirement that a law enforcement officer must personally observe the traffic violation to issue a ticket.

But Florida cities have found a way around the law by passing ordinances – instead of traffic laws – that allow police to issue citations to red-light runners caught on camera.

Officials in Temple Terrace and Lakeland said the cameras are working.

Temple Terrace officials are considering expanding the program from two intersections, 56th Street at Fowler Avenue and 56th at Bullard Parkway, to four or five. Since last October, the city has issued more than 22,200 citations, or about $1.4 million in fines.

"The cameras are working the way they're supposed to," said Michael Dunn, a spokesman for Temple Terrace. "We've seen a noticeable change in driver behavior at those two intersections. People are actually stopping for red lights."

Lakeland has installed nine cameras at five busy intersections and has issued more than 7,000 citations since June 1, when the cameras started rolling, city officials said.

Still, the cameras have been dogged by controversy in both communities.

Temple Terrace is being sued by five complainants who argue that the city's red-light camera ordinance violates vehicle owners' rights. Officials in Lakeland are weighing an "amnesty plan" for drivers who have been cited for violating no right-turn-on-red rules.

Port Richey, the first Bay area city to use them, dropped the technology last year after a disagreement with its vendor, though city officials are planning to find another provider.

Earlier this year, the Hillsborough County Sheriff's Office contracted with an Arizona-based company to install and operate red-light cameras at 10 busy intersections.

Besides the one at Dale Mabry and Waters, other cameras will be installed at Bruce B. Downs Boulevard and Fletcher Avenue; Bloomingdale Avenue and Bell Shoals Road; and the intersections of Sligh and Habana and Waters and Anderson avenues.

County officials expect to generate more than $200,000 a month from fines, but violators will receive a warning for the first 60 days. Fines will be issued starting on Dec. 29.

When someone runs a red light, the camera records the vehicle and its license plate. Law enforcement officials then review the evidence and decide whether it backs up a citation. Any tickets or warnings would be mailed to the vehicle's registered owner.

The citations are typically $125 for each violation, but repeat offenders could be fined upwards of $500. Violators are given an opportunity to challenge citations in court.

In most cases, the system is operated with little or no cost to local governments. The cost of installing and monitoring the cameras is paid for with revenue from the fines.

Advocacy groups and municipalities across the state have lobbied the state Legislature for years – with limited success – to pass a new law allowing the cameras statewide.

Studies offer conflicting information about their effectiveness. Some point to a significant drop in deadly T-bone crashes; others indicate a major increase in rear-end collisions.

According to the national Insurance Institute for Highway Safety, more than 900 people are killed every year in crashes involving red light running. The nonprofit group estimates half of the deaths are pedestrians and passengers in other vehicles.

http://www2.tbo.com/content/2009/oct/28/tampa-might-jump-red-light-cameras-bandwagon/news-breaking/


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:51 AMPost a Comment (0)

Hillsborough County's Red Light Cameras GO LIVE TODAY
November 10th, 2009 10:49 AM

I received this in an email forward, how true it is...judge for yourself. I have an artilce from TBO on this I will be posting shortly.

The County's red light cameras are scheduled to go live today. They are going to run a 60 day warning period. They will be issuing violations to every violator including other municipalities and governmental agencies. They are also issuing them to their own vehicles. The following intersections should be operational.

Fletcher/Bruce B Downs

Fowler/56th Street

Sligh/Habana

Brandon Blvd/Grand Regency

Bloomingdale/Bell Shoal

Waters/Dale Mabry

Waters/Anderson

NOTE: When stopping, your front tires must be behind the thick white line just before the walking zone. If you stop with your tires on the white line you get a ticket!

NOTE: (As someone who got caught by a camera for not making a full stop when turning right on red, it was easy to slide through at these large intersections with right hand turn lanes. Although I slowed down in the lane, the video showed I did not come to a complete stop.)

Subject: Caution Waters Ave and Dale Mabry Highway Intersection

NOTE: The month of November will be a trial run, beginning in December they will start issuing traffic citations. Lakeland and Clearwater have collected a combined $1.5 million dollars in fines this year from their red light camera systems. The citations are not only for running the red light, but the most offenses are not coming to a complete stop before turning right on red and not stopping behind the white stripe before the pedestrian cross walk The citation will be issued against the owner(s) of the car. It is a fineable offense with no points issued against your license. If you fail to pay the citation you will be called before the Red Light Code Enforcement Magistrate to show cause. If you fail to appear, the magistrate may institute daily fines till you pay the citation, county costs, and any daily fines, these daily fines can be high to gain compliance. The County will also file a lien against your property.


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:49 AMPost a Comment (0)

Congratulations 100 North Tampa on Your LEED Cert!
November 10th, 2009 10:42 AM

JLS Investment Realty would like to Congratulate the 100 N Tampa Office Tower on being the 2nd Tampa Office Building to get LEED certified by the Green Building Certification Institiute.

USAA was the 1st in Tampa to obtain the certification last year. We hope more local businesses will follow these Green Pioneers!


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:42 AMPost a Comment (0)

Tallest office building in Tampa is now green
November 10th, 2009 10:33 AM

Tallest office building in Tampa is now green

The 100 North Tampa office tower has been accredited by the Green Building Certification Institute.

It took 12 months for the 42-story building, downtown Tampa’s tallest, to be certified as silver, said Bryan Lauer, a broker and LEED accredited professional at CLW Real Estate Services Group, which manages and leases the building owned by Prudential Insurance.

It’s the second local existing office building to achieve green certification.

USAA’s southeast regional office in Tampa was certified last year. That 7-story, 523,558-square-foot office building at 17200 Commerce Park Blvd. was built in 1993.

The 100 North Tampa building, constructed in 1992, retrofitted 173 faucets, 140 toilets and 14 showerheads, along with the air conditioning system’s cooling tower to save 2 million gallons of water annually, Lauer said.

Roughly 74 percent of the building’s 311,165 pounds of trash — including paper, cans and bottles — were recycled between March 1 and May 31, the period tracked by the team. The CLW team will continue to track these efficiencies, Lauer said.

To improve indoor air quality, the building now uses higher quality air filters.


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:33 AMPost a Comment (0)

Report: Blackstone to invest in WestShore Plaza
November 10th, 2009 10:30 AM

Report: Blackstone to invest in WestShore Plaza

Private equity firm Blackstone Group has agreed to pay $195 million to buy stakes in two of Glimcher Realty Trust's malls, including Tampa’s WestShore Plaza Mall, published reports Monday afternoon said.

Blackstone is slated to pay roughly $27 million in cash and assume nearly $54 million in debt for a stake in the 1.1-million-square-foot WestShore Plaza, WSJ.com reported.

In addition, the firm would pay about $39 million in cash and $75 million in assumed debt for a share of the 1.4-million-square-foot Lloyd Center mall in Portland, Ore.

Blackstone said in September it had $12 billion to invest in real estate, and it was starting to see attractive opportunities in real estate again

The Lloyd Center was under contract in September to Merlone Geier Partners IX LP for roughly $192 million in cash and assumed debt but the deal fell through.

Michael Glimcher, chairman and chief executive officer, foreshadowed the sale Oct. 30 during the company’s Q3 earnings call during a discussion of the Lloyd Center deal.

“If you choose a buyer you don't always choose the right buyer, but we had a number of credible quality buyers and again our first choice would be to do a joint venture versus an [allied] sale, and frankly we’re in communication with backup buyers and JV partners on both Lloyd and WestShore and Polaris Towne Center,” Glimcher said, according to a transcript.

The Blackstone Group agreed Oct. 7 to pay $2.7 billion for Busch Entertainment Corp. including its Busch Gardens and Adventure Island properties.

Blackstone (NYSE: BX) also plans an initial public offering for one of its portfolio companies, Team Health Inc., the owner of Tampa-based After Hours Pediatrics. The Team Health IPO could raise up to $100 million for Blackstone.

Glimcher, a Columbus, Ohio-based real estate investment trust (NYSE: GRT), needs capital to pay down $1.6 billion in debt.

WestShore registered sales per square foot of $379 in 2008, reports state.

Executives said customer traffic is down by approximately 1 percent across its portfolio, and that is actually "encouraging," as it represents an improvement from the prior quarters, the company said.

Glimcher will continue operating the malls, according to the report. Its $91.5 million mortgage on WestShore expires in 2012.


Posted by Jennifer Stepanek, P.A. on November 10th, 2009 10:30 AMPost a Comment (0)

DEMA Show 2009 Conference
November 9th, 2009 6:22 PM

Jennifer Stepanek is back from the 2009 DEMA Conference in Orlando, FL at the Orange County Convention Center.

We had a great time with Narcosis Scuba Center in Tarpon Springs, FL. Check them out at http://narcosisscuba.com/ for PADI National Geographic Diver & PADI Scuba Lesson Information. Narcosis also runs tours in the Gulf of Mexico & local springs & rivers.


Posted by Jennifer Stepanek, P.A. on November 9th, 2009 6:22 PMPost a Comment (0)

Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit
November 9th, 2009 6:11 PM

Frequently Asked Questions
About the Move-Up/Repeat Home Buyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

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 $6,500 tax credit?
  2. What is the definition of a move-up or repeat home buyer?
  3. How is the amount of the tax credit determined?
  4. Are there any income limits for claiming the tax credit?
  5. What is “modified adjusted gross income”?
  6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
  7. Can you give me an example of how the partial tax credit is determined?
  8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
  9. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
  10. What types of homes will qualify for the tax credit?
  11. I read that the tax credit is "refundable." What does that mean?
  12. 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?
  13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
  14. I am not a U.S. citizen. Can I claim the tax credit?
  15. Is a tax credit the same as a tax deduction?
  16. 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?
  17. HUD allows “monetization” of the tax credit. What does that mean?
  18. 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?
  19. 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?

  1. Who is eligible to claim the $6,500 tax credit?
    Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.

  2. What is the definition of a move-up or repeat home buyer?
    The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

  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 $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.

  4. Are there any income limits for claiming the tax credit?
    Yes. 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) above those limits. 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. 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 the 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.

  6. 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 $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.

  7. 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 $6,500 by 0.5. The result is $3,250.

    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 $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275.

    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.

  8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
    The previous tax credits applied only to first-time home buyers and were for different amounts of money.

  9. 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 repeat 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.

  10. 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.

  11. 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 $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).

  12. 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 after November 6, 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. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS Form 5405.

  13. 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.

  14. I am not a U.S. citizen. Can I claim the tax credit?
    Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of “nonresident alien” in IRS Publication 519.

  15. 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 $6,500 in income taxes and who receives an $6,500 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 $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.

  16. 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 the 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.

  17. HUD allows “monetization” of the tax credit. What does that mean?
    It means that HUD will allow 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 the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. 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.

  18. 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.

  19. 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.

http://federalhousingtaxcredit.com/faq2.php


Posted by Jennifer Stepanek, P.A. on November 9th, 2009 6:11 PMPost a Comment (0)

$8,000 First-time Home Buyer Tax Credit at a Glance
November 9th, 2009 6:09 PM

$8,000 First-time Home Buyer Tax Credit at a Glance

  • 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 $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

  • To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
  • 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 $6,500.
  • The tax credit applies only to homes priced at $800,000 or less.
  • The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 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.

http://federalhousingtaxcredit.com/glance.php


Posted by Jennifer Stepanek, P.A. on November 9th, 2009 6:09 PMPost a Comment (0)

Frequently Asked Questions - About the First-Time Home Buyer Tax Credit
November 9th, 2009 6:09 PM

Frequently Asked Questions
About the 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 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?
  2. What is the definition of a first-time home buyer?
  3. How is the amount of the tax credit determined?
  4. Are there any income limits for claiming the tax credit?
  5. The income limits for claiming the tax credit were raised when the tax credit was extended. Are the higher income limits retroactive?
  6. What is “modified adjusted gross income”?
  7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
  8. Can you give me an example of how the partial tax credit is determined?
  9. How is this home buyer tax credit different from the tax credit that Congress enacted in early 2009?
  10. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
  11. What types of homes will qualify for the tax credit?
  12. I read that the tax credit is "refundable." What does that mean?
  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?
  14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (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?
  16. I am not a U.S. citizen. Can I claim the tax credit?
  17. Is a tax credit the same as a tax deduction?
  18. I bought a home in 2008. Do I qualify for this credit?
  19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
  20. HUD is now allowing "monetization" of the tax credit. What does that mean?
  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?
  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?

  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.

For more information, go to: http://federalhousingtaxcredit.com/faq1.php#12


Posted by Jennifer Stepanek, P.A. on November 9th, 2009 6:09 PMPost a Comment (0)

Expanded First-Time Home Buyer Tax Credit Becomes Law
November 7th, 2009 10:44 PM

By Luke Mullins - Posted: November 6, 2009

In the hopes of sustaining the real estate market's recent momentum, Uncle Sam has made more than two-thirds of current homeowners and nearly all first-time buyers eligible for thousands of dollars in tax perks when they purchase a house. President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law Friday, a day after the House of Representatives approved it by a 403-to-12 vote. The legislation includes language that significantly expands the popular first-time home buyer tax credit that was enacted in February. The development represents a big victory for the real estate and home building industries, which had to overcome concerns about the measure's costs while rallying support for its enactment. Here are five things you need to know about the development:

1. For first-time home buyers: While the value of the credit remains as high as $8,000, the new law pushes back the deadline by which qualified first-time home buyers must make their transaction in order to claim it. (The legislation defines "first-time home buyers" as anyone who has not owned a principal residence in the three years prior to making the purchase.) Under the previous law that went into effect in February, buyers needed to close the transaction by Nov. 30. However, under the terms of the new law, home buyers must have a signed sales contract before May 1, 2010, but they have until the end of June to actually close the transaction. At the same time, the new law raises the annual income limits from $75,000 to $125,000 for singles and from $150,000 to $225,000 for married couples. The changes make nearly all first-time home buyers eligible for the credit, according to Goldman Sachs economist Alec Phillips.

2. For current home owners: In addition, the new law makes most current homeowners eligible for a tax credit of up to $6,500 when they purchase their next primary residence. Under the terms of the legislation, current homeowners must have lived in their home for five consecutive years over the previous eight to be eligible. Qualified home buyers can obtain the credit on homes purchased between Nov. 7 and the end of April 2010. That means they need a signed sales contract on a home before May 1, 2010, but they have until the end of June to close the sale. The income limits for current homeowners are the same as those for first-time home buyers. About 70 percent of current homeowners are now eligible for the credit, according to Phillips.

3. Additional specs: The credit can only be claimed on primary residences purchased for less than $800,000. And as long as they use the property as their primary residence for three or more years after the purchase, buyers don't have to pay it back. Furthermore, buyers can claim the credit on their 2009 taxes, even if the purchase was made in 2010 by filing an amended return.

4. Fighting fraud: The first-time home buyer tax credit became the subject of controversy in late October, when a Treasury Department inspector general told Congress that his office had identified hundreds of millions of dollars in questionable claims. The suspicious cases included taxpayers who claimed the first-time home buyer credit even though it appeared that they had owned residential property within the previous three years, as well as taxpayers who claimed the credit before actually purchasing the home. Hundreds of taxpayers younger than 18 years old—and at least one who was just four—also claimed the credit. And by expanding the initiative to include more than two-thirds of current homeowners, the potential for incorrect or fraudulent claims has only increased.

To that end, the new law includes measures designed to limit its abuse. Anyone claiming the credit must now provide documentation—such as a copy of their HUD-1 Settlement Statement—to prove that the sale has closed. In addition, it also bans anyone younger than 18 years old from claiming the credit.

5. Price tag: First-time home buyer tax credits have cost the government around $10 billion in lost revenue through Aug. 22. The expanded credit program is projected to cost an additional $10.8 billion or so. Amid mounting concern over massive government spending—the federal budget deficit for fiscal year 2009 was $1.4 trillion—some economists have questioned whether additional home buyer subsidies are really the best use of taxpayer cash. The financial blog Calculated Risk, for example, estimates that the February first-time home buyer tax credit cost the government roughly $43,000 for every additional home sale it generated.

Economists at Goldman Sachs have estimated that the February first-time home buyer tax credit would trigger an additional 200,000 sales by the end of the year. Mark Zandi, the chief economist at Moody's Economy.com, puts the figure closer to 400,000 by the end of November. Nevertheless, Goldman's Phillips argues that the new law won't have a game-changing impact on the housing market. That's because only 14 percent of first-time home buyers who had been ineligible for the credit can now participate thanks to the higher income limits. Meanwhile, the credit's expansion to current homeowners may increase sales activity. "However, these sales would not result in a reduction of the inventory on the market, since every buyer taking advantage of the move-up credit would necessarily be a seller (of their existing principal residence)," Phillips said in a report. Nevertheless, the expanded credit could boost home prices by about 1 percent, Phillips says.

http://www.usnews.com/money/blogs/the-home-front/2009/11/06/expanded-first-time-home-buyer-tax-credit-becomes-law.html


Posted by Jennifer Stepanek, P.A. on November 7th, 2009 10:44 PMPost a Comment (0)

House seen expanding home buyer tax break: Hoyer
November 4th, 2009 12:14 AM

WASHINGTON (Reuters) – The U.S. House of Representatives is expected to back a Senate plan to extend a popular homebuying tax credit through April and also expand its scope, House Majority Leader Steny Hoyer said on Tuesday.

"I would prefer that they had not done the changes ..., but they did and I think that they'll be acceptable and I was pleased that April 30th is their date for eliminating this program," Hoyer told reporters on Capitol Hill.

The Senate is considering expanding the popular housing tax credit as part of a larger piece of legislation aimed at extending insurance benefits for jobless workers. It is expected to vote on the measure this week.

The current $8,000 credit, which expires at the end of the month, has been available only to first-time buyers, but the Senate is considering expanding it to repeat buyers.

The House, which would have to approve the measure before sending it to President Barack Obama for his signature, is expected to take up the measure next week.

Some House Democrats, including Hoyer, had expressed concern about the cost of expanding the credit.

Under the new language in the Senate, homeowners who have lived in their home for five of the past eight years would be eligible to receive a $6,500 tax credit, while first-time buyers would still be eligible for an $8,000 credit.

The proposal would also increase the income limits of those eligible for the program, to $125,000 per year for individuals and $225,000 for couples.

The bill's chief proponent, Senator Johnny Isakson, a Georgia Republican and a former real estate agent, said expansion would cost about $10.2 billion over 10 years and would be paid for with offsetting cuts elsewhere in the budget. Simply extending the current tax credit is estimated to cost $1 billion a month.

The tax credit would apply for homes under contract by the end of April, although buyers would have until the end of June to close on the purchase.

Analysts say the credit has helped the housing market, although critics question whether the value is worth the cost.

The Obama administration has urged Congress to extend the credit but has been conspicuously silent on expansion. Senate Banking Committee Chairman Chris Dodd said he expects Obama to back an expansion.

http://news.yahoo.com/s/nm/20091103/pl_nm/us_usa_congress_hoyer_housing


Posted by Jennifer Stepanek, P.A. on November 4th, 2009 12:14 AMPost a Comment (0)

Home prices continue rebound
November 3rd, 2009 11:01 PM

Home prices continue rebound

Case-Shiller index shows fourth straight month-over-month increase. Year-over-year decline moderates more than expected.

NEW YORK (CNNMoney.com) -- Home prices rose for the fourth month in a row during August and suffered a smaller-than-expected annual drop, according to a report issued Tuesday.

Prices in the S&P Case-Shiller Home Price index of 20 cities rose a non-seasonally adjusted 1.2% in August. It was the fourth consecutive monthly increase and followed a 1.6% gain in July.

Prices were down 11.3% versus August 2008, but that drop was less severe than expected. Analysts surveyed by Briefing.com had forecast an 11.9% year-over-year drop.

"Broadly speaking, the rate of annual decline in home price values continues to improve" said David Blitzer, chairman of Standard & Poor's index committee.

While many U.S. markets remain down versus this time last year, the relative rate of decline "has shown some real improvement," Blitzer added.

Home prices improved on an annual basis in 19 of the 20 major metropolitan markets in the survey.

State by state. In California, home prices have recovered notably from depressed levels in recent months, according to the report.

Home prices rose 2.8% in San Francisco during August, while San Diego prices were up 2.5% and Los Angeles gained 1.8% in the month.

Minneapolis had the biggest increase, with home prices rising 3.2% from July to August.

But prices continued to slide in areas that have been hit hard by foreclosures. Prices dropped 0.5% in Cleveland and 0.3% in Las Vegas during August.

A shaky recovery. Overall, the housing market has been stabilizing as low home prices and attractive mortgage rates, as well as government tax credits, have revived anemic home sales.

However, the market remains hampered by unemployment, which rose to a 26-year high last month. And real estate analysts warn that the expiration of a popular new homebuyer tax credit next month could stifle the rebound in home sales.

The improvement in home prices could also be hindered by a "wall of supply" coming to market this spring from private sellers and foreclosures, warned Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Given the long-term challenges facing the housing market, the outlook for home prices remains grim.

Home values are predicted to drop in 342 out of 381 markets during the next year, according to a recent study by financial information and analysis firm Fiserv.

Fiserv expects the national median home price to drop 11.3% by June 30, 2010. To top of page

http://money.cnn.com/2009/10/27/real_estate/case_shiller_August_home_price_index/index.htm?postversion=2009102712


Posted by Jennifer Stepanek, P.A. on November 3rd, 2009 11:01 PMPost a Comment (0)

Foreclosures: Worst-hit cities
November 3rd, 2009 10:59 PM

Foreclosures: Worst-hit cities

Foreclosure rates are easing in some of the hardest-hit areas, but the plague is spreading to new cities.

NEW YORK (CNNMoney.com) -- While foreclosure rates are easing in some of the hardest-hit cities, the crisis is beginning to expand into new metro areas.

On Wednesday, RealtyTrac released its list of cities with the biggest foreclosure problems during the third quarter. As expected, towns in California, Florida and Nevada dominated the top 10, with Las Vegas taking the top spot with a rate of 1 in 20 homes. That's a 53% increase over the third quarter 2008.

But there was a bright spot: Half of the cities in the top 10 showed year-over-year declines in their foreclosure rates, and 60% showed improvement compared with the second quarter.

For example, second place Merced, Calif., saw foreclosures fall by 11% from last year and 13% from last quarter, to 1 out of every 27 homes. And Stockton, Calif., slipped to No. 4 from No. 2 last quarter. The city, which is 80 miles east of San Francisco, had ranked highest for all of 2008.

"We're not sure if that will be a one-time thing or a true continued trend, but it's one of the first positive signs we've seen," said Rick Sharga, a senior vice president at RealtyTrac.

New hotspots. But if Las Vegas was the big loser, its neighbor, Reno, Nev., was hot on its heels. The No. 9 city posted an 80% gain in foreclosures -- 1 in 37 homes -- compared to the third quarter of last year. And it's just one of several smaller metro areas that are creeping their way up RealtyTrac's foreclosure list.

"Foreclosure activity is spreading from primary cities into secondary areas," said Sharga. "These aren't your LAs and Phoenixes -- it's moving into outlying regions."

Boise, Idaho, cracked the top 20 for the first time as foreclosures jumped 141% -- the largest increase from 2008. Similarly, Provo, Utah, rose 120%.

The pair of cities "are the first two cases where areas with very high unemployment are breaking into the top spots," Sharga said. "That will continue over the next few months."

Outlook. "The fact is, we're still seeing record levels of foreclosure activity," said Sharga, who doesn't expect rates will peak until 2010 because many option-ARMs will reset over the next several months.

Still, the housing market seems to be adjusting, because home prices are stabilizing -- albeit at a lower level, Sharga said.

A record number of properties "are coming down the foreclosure pipeline" as well, Sharga said, and they will be trickling into the housing market over the next four years.

"We expect a longer, less robust recovery for the housing market," Sharga said. "We won't know what's what until everything gets worked out of the system." To top of page

http://money.cnn.com/2009/10/28/real_estate/foreclosures_worst_cities/index.htm?postversion=2009102811


Posted by Jennifer Stepanek, P.A. on November 3rd, 2009 10:59 PMPost a Comment (0)

Expanded Home Buyer Tax Credit to Cost $10.8 Billion
November 3rd, 2009 10:56 PM

Posted by: Prashant Gopal on October 29

Majority Leader Harry Reid’s office just sent me an outline of the Senate Democrats’ plan to extend and expand the home buyer tax credit. Much of this was covered in my previous blog post. But there’s one new detail that hasn’t been reported elsewhere. It will cost $10.8 billion. That’s a bit more expensive than the existing credit, which will have cost taxpayers about $8.5 billion by the time it expires Nov. 30.

Some more details:

*The credit is available for homes that go under contract by April 30, 2010 and close within 60 days after that.

*It will be attached to a bill to extend unemployment benefits, but it’s unclear when that bill will be voted on.

* First-time buyers (those who have not owned a home for three years) can claim an $8,000 credit. Homeowners who buy a new principal residence after living in their current home for at least the last five years can claim up to $6,500.

*Income limits: $125,000 a year for individuals, $225,000 a year for married couples.

* The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.

I ran the $10.8 billion figure by Moody’s Economy.com chief economist Mark Zandi, who hasn’t yet come up with a cost figure for the current proposal. But he said “that sounds in the ball park.”

http://www.businessweek.com/the_thread/hotproperty/archives/2009/10/expanded_home_b.html


Posted by Jennifer Stepanek, P.A. on November 3rd, 2009 10:56 PMPost a Comment (0)

CIT Files for Chapter 11
November 2nd, 2009 1:32 PM

Peek
NEW YORK CITY-CIT Group filed for Chapter 11 Sunday in the US Bankruptcy Court here. The filing will reduce the lender's total debt by $10 billion. With a total filing for approximately $71 billion this registers CIT Group as the fifth-largest bankruptcy in US history with the dubious honor of placing between General Motors' $91.5-billion Chapter 11 and Enron's $65.5-billion filing.

"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," chairman and CEO Jeffrey M. Peek says in a statement.

The lender's financials took a dive as more and more of its loans defaulted, leaving it a lender with an inability to lend. The mounting debt topped out around $31 billion. CIT then expanded its senior secured credit facility by $4.5 billion maturing in 2012, mostly from bondholders.

The lender had prepared a pre-packaged reorganization, which caused a public and private battle with self-purported largest shareholder Carl Icahn. After some changes to the reorganization plan, Icahn then changed his vote and offered $1 billion to help buoy the lender.

On Friday, CIT issued a statement, saying: "We are pleased to have reached this agreement with Mr. Icahn. Our ability to secure an incremental $1 billion committed line of credit from Mr. Icahn’s affiliates supports our restructuring plan and helps ensure our ability to continue to serve our existing small business and middle market customers."

CIT Group picked up $2.3 billion from the US's Term Asset Relief Program. CIT's operating subsidiaries were not included in the filing. The vote for the plan was passed with 90% of the votes from participating shareholders. The lender plans to be out of bankruptcy by the end of the year.

http://www.globest.com/news/1529_1529/newyork/181956-1.html


Posted by Jennifer Stepanek, P.A. on November 2nd, 2009 1:32 PMPost a Comment (0)

First-Time Home Buyer Tax Credit: 6 Things to Know
November 2nd, 2009 9:33 AM

While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill

that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.

1. Eight grand, new buyers: The tax credit

included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home

on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

http://www.usnews.com/money/blogs/the-home-front/2009/02/17/first-time-home-buyer-tax-credit-6-things-to-know.html


Posted by Jennifer Stepanek, P.A. on November 2nd, 2009 9:33 AMPost a Comment (0)

New Home Buyer Tax Credit: 7 Thinks You Need to Know
November 2nd, 2009 9:30 AM

Anyone brave enough to jump into today's free-falling housing market can take advantage of some serious incentives. At the national level, home prices are off nearly 27 percent from their 2006 peaks, with certain markets--like Las Vegas and Miami--down more than 40 percent. That means most of today's buyers will be able to pick up properties at significant discounts compared with just a few years ago. Meanwhile, 30-year fixed mortgage rates are hovering at historically attractive levels of roughly 5 percent. But with the still-swooning housing market threatening to exacerbate an already-frightening recession, Uncle Sam recently tossed an additional incentive into the mix. To stimulate demand, President Barack Obama's $787 billion economic stimulus plan--which was signed into law in mid February--included a tax credit

of up to $8,000 for first time-home buyers. Here are seven things you need to know about this new tax credit:
Click here to find 
out more! Click here to find out more!1. The specs: The tax credit is equivalent to 10 percent of the purchase price of the home--which must be a principal residence--but is capped at $8,000. It applies only to first-time home buyers, who are defined as buyers that haven't owned principal residences for three years before making the purchase. The tax credit, however, is subject to income limitations. A single buyer would need an adjusted gross income of $75,000 or less to be eligible for the full credit (For married couples it’s $150,000.) Those who make more may qualify for partial credits.

[For more details, check out First-Time Home Buyer Tax Credit: 6 Things to Know.]

2. 2009 buyers: The credit only applies to those who buy a home on or after Jan. 1 and before Dec. 1, 2009. That means anyone who bought a home last year is out of luck. But Richard Moody, the chief economist at Mission Residential, says a more significant shortcoming of the tax credit is that it won't help 2010 buyers. Moody argues that the biggest factor keeping people from buying homes these days is the weakening labor market. In other words, as long as Americans are worried they could lose their jobs they won't buy homes, he says. "I don't expect to see any appreciable improvement in the labor market until sometime next year at the earliest," he says. "[As a result], I think this [tax credit] is going to expire before a lot of people feel confident to go out and make this purchase."

3. $15,000 letdown: The tax credit is much smaller than a similar $15,000 measure that was included in the Senate's version of the stimulus bill. The $15,000 tax credit was scrapped during negotiations between the House of Representatives and the Senate. "We would have liked to have seen [a bigger tax credit]," says Tom Kunz, the president and CEO of Century 21 Real Estate. "But $8,000 is still $8,000."

4. No payback: The good news for prospective homebuyers is that unlike a previously-enacted $7,500 tax credit, this one doesn't have to be repaid. That makes the credit much more attractive from a would-be buyer's prospective, says Keith Gumbinger of HSH Associates. "[It's a] more traditional sort of incentive," he says.

5. One of many: With home prices declining and job losses rising, the tax credit is just one of many factors to consider when deciding whether or not to buy a home, says Mike Larson of Weiss Research. "It should factor into your decision, but it shouldn't drive your decision," he says. The trend of property values in a local market, the buyer's job security, and the number of years the buyer plans on living in the house are more important. "This [tax credit] can help, but those are the real things that are going to be a fundamental driver," Larson says.

6. Market impact: Gumbinger expects the measure to have only a modest impact on the housing market. That's because it can't do anything to address the weakening labor market, falling consumer confidence, or tightening lending standards that are working to prevent many would-be buyers from entering the market. "It certainly helps to serve an audience which can [already] participate in the market," Gumbinger says. "But it doesn't do anything to help to develop demand from those borrowers who are at the fringes--or far away from the fringes--of participating."

7. Part of a bigger effort: Nicolas Retsinas, the director of Harvard University's Joint Center for Housing Studies, says the tax credit should be perceived as one component of a broader effort to revive the housing market and the economy. The economic stimulus package is designed to bolster the labor market, and the Obama administration's new housing plan will attempt to limit foreclosures. "If those two make a difference, then this could be an added stimulus," Retsinas says. "But again, it's tough to buck the erosion of jobs and the foreclosure market."

http://www.usnews.com/money/personal-finance/real-estate/articles/2009/02/26/new-home-buyer-tax-credit-7-things-you-need-to-know.html


Posted by Jennifer Stepanek, P.A. on November 2nd, 2009 9:30 AMPost a Comment (0)

First-Time Home Buyer Tax Credit Gets Obama Nod & New Home Buyer Tax Credit: 7 Things You Need to Know
November 2nd, 2009 9:26 AM

An extension of the $8,000 first-time home buyer tax credit appears all but certain after the Obama administration called on Congress to give house hunters more time to claim the popular tax perk. The move comes shortly after Senate lawmakers stuck an agreement to not only push back the measure's looming deadline but expand it to allow current homeowners and more affluent buyers to claim the credit. "We welcome efforts taken by Congress to extend the first-time home buyers tax credit for a limited period," Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan said in a joint statement today. "This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide." Here are five things you need to know about the development:

[See New Home Buyer Tax Credit: 7 Things You Need to Know.]

1. Roots and impact: A tax credit of as much as $8,000 for certain qualified first-time home buyers was included in the Obama administration's sweeping economic stimulus package, which the president signed in mid-February. The measure was designed to stimulate additional demand for residential real estate and help absorb the overhang of unsold properties that was putting downward pressure on home prices. Along with cheaper home prices and attractive mortgage rates, the perk has helped reduce the glut of unsold properties. Mark Zandi, the chief economist at Moody's Economy.com, expects the tax credit to result in as many as 400,000 additional home sales by the time of its scheduled expiration at the end of November. But trade groups—like the National Association of Home Builders and the National Association of Realtors—have been lobbying Congress to push the deadline back, arguing that failing to do so would jeopardize recent signs of stability in the housing market. The NAHB, for example, blamed yesterday's weaker-than-expected new home sales report on the tax credit's impending expiration.

[See Weak Home Sales Suggest a Slog of a Recovery.]

2. Extending the deadline: Although various proposals to extend and expand the credit have circulated in Congress for weeks, Senate lawmakers finally reached a deal in recent days. Under the terms of the agreement, the deadline for first-time home buyers to claim the $8,000 credit would be pushed back to April 30, 2010. But the term "deadline" doesn't mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase. That's much different from the current credit, in which transactions must be closed by November 30. Looked at one way, the effective deadline of the credit under this agreement is actually the end of June.

3. Existing buyers: But perhaps the most significant change is that current homeowners would become eligible for the tax perk as well. The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit. The agreement, however, would allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years. Expanding the credit beyond first-time buyers is intended to boost home sales to "move up" buyers—those moving from one house to another—which some lawmakers, most notably Georgia Republican Sen. Johnny Isakson, argue is essential to a housing recovery.

4. More-affluent home buyers: The agreement also enables more affluent Americans to claim the tax credit. Senators moved to increase its annual income limits from $75,000 to $125,000 for single buyers and from $150,000 to $225,000 for married couples. These limits apply to both first-time and move-up buyers, although neither can purchase a home for more than $800,000 and still get the credit. Anyone taking the credit on a 2010 purchase can claim it on his or her 2009 tax return. And as long as home buyers live in the property they purchased via the credit for three years or more, the tax credit does not have to be repaid.

5. Credit controversy: Zandi estimates that the Senate agreement would generate more home sales than the current credit would. "It's broader, [and] the industry is geared up to take advantage of it now," he says. But first-time home buyer tax credits have already cost the government more than $10 billion in lost revenue, and Zandi expects that the Senate agreement would cost at least as much. And although it's been popular with those purchasing homes, some economists have called the credit an inefficient use of federal resources. Calculated Risk, a financial blog, has estimated that Uncle Sam has paid $43,000 for every additional home sale. And the Senate agreement—which enables households making more than $200,000 a year to claim the credit—could certainly appear overly generous in a time of trillion-dollar budget deficits.

At the same time, the credit has recently been linked to widespread abuse. Russell George, the Treasury Department's inspector general for tax administration, told a congressional panel last week that 19,300 taxpayers had claimed the first-time home buyer credit before they had even purchased a home. In another 74,000 cases—totaling more than $500 million—taxpayers claimed the credit despite evidence that they had owned a home within the past three years. And in at least one case, a 4-year-old claimed the credit, George said.

[See First-Time Home Buyer Tax Credit: All Sorts of Sketchy Claims.]

Although the agreement appears to have broad bipartisan support, it still has to get out of the chamber. Along the way, it could be stripped of certain generous provisions. But in light of the White House support, it appears all but certain that at the very least, the first-time home buyer tax credit will be extended beyond its November 30 deadline.

http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html


Posted by Jennifer Stepanek, P.A. on November 2nd, 2009 9:26 AMPost a Comment (0)

 


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Posted by Jennifer Stepanek on January 17th, 2011 9:32 PMPost a Comment

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