FROM THE BROKERS DESK

With the nations unemployment rate now rising to over 10%, 10.2% to be exact, for the first time since 1983,  the increase in joblessness will lead invariably to an upswing in residential mortgage delinquencies.  President Obama has signed legislation extending the $8,000 first time home buyer tax credit and giving additional tax breaks as well to certain homeowners who are trading up in their  real estate purchases. Passed overwhelmingly by Congress, this bill provides a $6,500 tax credit to homeowners who are buying a new primary residence beginning December 1, 2009. the language mandates that to get the credit the homeowner must have owned their home for five consecutive years of the previous eight. But there are caps on the tax credits. They only apply to individual buyers who make no more than $125,000 individually and $250,000 for couples. There is also an anti-flipping provision: any homeowner who collects the credit and sells within three years must return the money to Uncle Sam. The FTHB was extended to cover consumers signing a contract by April 30th and closing by June 30th 2010.