Moles, Voles, Gophers & Ground Squirrels – Oh My!

Yes, I know that these fuzzy little rodents have been glamorized in many a light-hearted film and print media, not to mention the iconic songsters lead by the rebel “Alvin”. BUT….. at my house these guys are a royal PAIN. Two years ago my yard, my veggie garden, my roses and flower beds showed no signs of the little critters, but beginning last summer they moved in with full force.  I live on acreage, so there should be room for everyone but no, overnight the once level soil nearest the house turned lumpy and plants started sinking or falling over as the ambitious miners tunnelled their way through uncharted territory. With no respect for my efforts to practice envirnomentally friendly gardening procedures (so that I wouldn’t poison the soil or the large wild bird population that stops by for their daily rations), these disrepectful brown-nosers have turned me into a raving lunatic.  I’m sure the neighbors get quite a kick out of watching me stomp the ground like a 2 yr old in the throws of a temper tantrum as I crush the multiple paths througout the flower beds.  They will even see me slapping the ground with a shovel every once in a while which I’m sure causes snickers of laughter from the on-lookers as well as the underground perpretators. 

Well…NO MORE!  After replacing about $300 worth of plants this spring – I’ve had it.   I’m pulling out the big guns.  We’ve heard that they don’t like vibration so we have dotted our fence line with windmills, we’ve tried smoking them out by opening up the tunnels and sending burning Sulfur down the runs, and a friend of ours has even purchased an impliment of destruction called the “Rodenator” that sends propane down the holes and then is set on fire to blow everything up!  (Remind you of Bill Murray?)  So now that I have even larger holes in my yard than what the rotten little rodents caused – I’m reduced to chemical warfare.  I know it’s not PC and I hope I don’t encourage the mutation of my bird population – but my patience and pocketbook have gotten the best of me….

DIE YOU BASTARDS…DIE!

$8000 TAX CREDIT FOR DOWNPAYMENT – OOPS…JUST KIDDING….

As we expected – this morning FHA rescinded the notion that the $8000 tax credit for 1st time home buyers could be used as down payment on a home. As my prior blog indicated – it was an idea that sounded good, but just not enough thought was put into the mechanics of implementation. The media grabbed a hold of the “idea” and made it sound like it was fact (very irresponsible in these times, but it sells readership and ratings and that is what is most important to that industry).

That being said, there are some states and non-profit organizations that are seriously looking into offering short term “bridge” loans to possibly accommodate the idea of using the credit for down payments. The success of this will depend largely upon how deep the pockets are of the non-profits and/or state budgets. You still have the issue of whether the buyer’s lender will allow and underwrite this loan.

In any event, be sure to consult with your professional Realtor who can keep you informed on what is REAL and what programs are available in your local market area.  Each market is different.

$8000 Tax Credit- Work in Progress..

WOW! Boy is there a lot of buzz out there about the $8000 first time home buyer tax credit! The good thing is that it’s seems to be working, I have had an increase in the number of clients that want to or who already have taken advantage of the credit.  Now, with the latest FHA announcement of the possibility of using the tax credit as part of the down payment at closing, there is even more interest in the program. Let’s take a look at a couple of common questions that arise:

QUESTION:
1) Who qualifies as a 1st time home buyer?
2) Can you claim the credit on your 2008 taxes even though you bought the house in 2009?
3) What if you owe IRS more than $8000?
4) How can you use the $8000 as part of your down payment?

ANSWER:
1) If you have never owned a primary residence before OR if you have not owned a primary residence for the last 3 years YOU QUALIFY!
2) If you purchased in 2009 you can claim the credit on your 2009 taxes that you file in 2010 OR you can file an ammended return for 2008 and claim the tax credit - YAHOO!
3) Consult your tax preparer, but remember the $8000 is only a CREDIT towards what you owe, so if the bottom line owed to IRS for your taxes exceeds $8000 you don’t receive any portion as a refund.
4)  The POTENTIAL use of the $8000 tax credit towards your down payment has not been authorized yet. The details of just how it will work has not been figured out. It may authorize various states and non-profit organizations to issue “bridge loans” to front the $8000 credit  BUT,  the details have not been worked out.  (IRS has a rule saying that no one besides the specified taxpayer can receive refunds)  Also, will lenders actually underwrite a loan with this provision?  Are we back to encouraging 100% financing ? (I thought that this was one of the things that got us into this mess in the first place) 

I WANT THIS TO WORK as I feel it be one more factor in stimulating a very concerned and scared economy and I really think this is another idea that will help us get over the hump. Yet, this is not a time for campaign reteric - this is a time to figure out what is needed, analyze and plan how it will work and THEN announce it.    The public is looking for a program that is logical and ready to use now – not an empty promise disgused as an off-the-cuff idea that gets bogged down in realistic implimentation.

No matter what the final outcome of this, I strongly suggest that my clients seek professional advise when it comes to taxes and how this or any other government program may affect them.

NOW… let’s look at cracking down on unfair credit card company practices.  Let’s also look at freeing up capital and lines of credit so that businesses can keep their doors open and keep their employees working – if you aren’t working – you aren’t going to buy ANYTHING let alone a home.