Barack Obama Speaks at Wright Middle School in Madison, WI

Barack Obama visited Wright Middle School in Madison last week, and spoke to students about the importance of Education.

Five reasons to Buy or Sell a Home with Nicole Charles & Associates

Five reasons to work with Nicole Charles & Associates of Keller Williams Realty:

1. We save you money! On average, our Sellers net about 3.5% more with us than when working with other agents, and our Buyers save roughly 5% more than when working with other agents.
2. Our listings sell in about one third of the time than the average listing in the area!
3. Nicole’s expert negotiation skills ensure that you’re getting the best deal possible with your home sale or purchase.
4. Our team is dedicated to excellent customer service and to making sure that you know exactly what’s going on and what is to come at all points within your transaction.
5. Nicole’s strong mortgage background is a huge asset in today’s changing market. Helping Buyers and Sellers understand what contingencies a lender will and will not allow can really make all the difference in getting to a successful closing!

Nicole tells how she became the Rookie of the Year

Nicole Charles - 2008 Keller Williams Rookie of the Yea produced by Brian Ingle on WellcomeMat

Congress Extends and Expands First Time Home Buyer Tax Credit!

Dear Readers,

I'm excited to be able to tell you that Congress has passed an extension of the $8000 first time buyer tax credit. Additionally, there is also an added provision for a $6500 tax credit available to current home owners who make a move right now! This is exciting news!

The new tax credit is available to homeowners who have resided in their primary residence for at least 5 years. There is no requirement in regards to 'buying up', so this credit is an advantage to everyone, even those who are considering downsizing!

This extension/revision is great news for both Buyers and Sellers alike. Buyers - you now have time to find that house if you haven't already done so. Seller's - you now have an added incentive to make a move in the current market. Money is cheap, prices are low, and it's a FANTASTIC time to make a move!

Please feel free to pass this information on to anyone who you think may find it useful. Of course, I'd love to chat with anyone you know who has considered making a move but hasn't been able to do so yet. Your referrals alre always greatly appreciated!

Let me know if you have any questions. Make it a great day!

Nicole
nicolecharles@kw.com
(608) 513-0021

The following information about the tax credit extension is from the National Association of Realtors.

Homebuyer Tax Credit FAQs:

• Q: Existing homeowner credit: Must the new house cost more than the old house?
• A: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
  

• Q: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
• A: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
  

• Q: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
• A: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).
  

• Q: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
• A: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
  

• Q: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
• A: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

• Q: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
• A: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
  

The Differences:

Old Tax Credit (Jan 1 - Nov 20, '09) vs.

New Tax Credit (Dec 1 - Apr 30, '10)

First-time Buyer Credit Amount
• Then: $8,000.
• Now: $8,000.

First-time Buyer Definition for Eligibility
• Then: May not have had an interest in a principal residence for 3 years prior to purchase.
• Now: Same.

Current Homeowner Credit Amount
• Then: $0.
• Now: $6,500.

Current Homeowner Definition for Eligibility
• Then: None.
• Now: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Termination of Credit
• Then: Purchases after November 30, 2009.
• Now: Purchases after April 30, 2010.

Binding Contract Rule
• Then: None.
• Now: So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Income Limits
• Then: $75,000 - single, $150,000 - married.
• Now: $125,000 - single, $225,000 - married.

Limitation on Cost of Purchased Home
• Then: None.
• Now: $800,000.

Purchase by a Dependent
• Then: None.
• Now: Ineligible.

Anti-fraud Rule
• Then: None.
• Now: Purchaser must attach documentation of purchase to tax return.

Countdown to Thanksgiving!

Fannie Mae to rent out homes instead of foreclosing

Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.

The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.

But the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.

While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.

The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.

Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.

To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31 percent of their pretax income.

Fannie Mae's sibling company, Freddie Mac, launched a similar effort in March. That policy, however, requires the foreclosure to be complete and only allows month-to-month leases. A Freddie Mac spokesman declined to say how many borrowers have participated.

(Article from www.Madison.com, written by ALAN ZIBEL, Originally posted on Thursday, November 5, 2009, 9:00 am)

Hydrogen Economy: Fundamental Changes In Our Future

Monday, 11/30/2009, 7:30 pm

Distinguished Lecture Series - Jeremy Rifkin

Futurist Jeremy Rifkin is the author of 16 books on the impact of scientific and technological changes on the economy, the work force, society, and the environment. His book, The End of Work, is an international best-seller that is widely credited with helping shape the current global debate on technology displacement, corporate downsizing, and the future of jobs. He is a frequent guest on numerous television programs, including Crossfire, Face the Nation, Nightline, 20/20, Larry King Live, The Today Show, and Good Morning America. Rifkin's latest book, The Hydrogen Economy, is an eye-opening journey into the next great commercial era in history. He envisions the dawn of a new economy powered by hydrogen that will fundamentally change the nature of our market, political and social institutions, just as coal and steam power did at the beginning of the industrial age.

Memorial Union - Wiscosin Union Theater.
Free; see website for free ticket distribution information
www.union.wisc.edu/DLS