The first-time homebuyer tax credit has been extended to cover sales after November 6, 2009 and in contract by April 30, 2010.  There are limits to qualify for the homebuyer tax credit such as income limits.  Income limit for individuals is $125,000 while couples have a limit of $225,000.  Home buyers must not have owned a home for three years and the tax credit is applicable only to primary residences.

Even if you’re not a first-time homebuyer, you can still avail the tax credit.  Homebuyers can get a credit of up to $6,500 if they are buying a primary home and…

The recovery in the housing market is at a risk of collapsing.  The announcement made by the Bank of America to forgive up to 30% of their total mortgage balance can only help 45,000 troubled homeowners and this would not make a difference in the country’s foreclosure problems.  Also, forgiving principal may encourage people to default intentionally on their mortgages.

Still, home sales are sliding, prices are stalling, foreclosures are rising and mortgage rates are likely to go up after next week when the Federal Reserve ends their program.

A few months ago, the housing market was showing signs of recovery and…

The Obama administration pushes mortgage help for unemployed homebuyers and homeowners.  The new push takes direct aim at the major cause of the current wave of foreclosure which is unemployment.  Banks and other lenders would have to reduce the payments to no more than 31% of a borrower’s income, which would typically be their unemployment insurance, for up to 6 months.  In some cases, a lender could allow a borrower to make no payments at all.

This push also seeks to help borrowers who owe more on their mortgages than their properties worth.  The help would come by encouraging lenders to…

The Bank of America is making the right step towards a positive direction in helping the housing market recover.  They announced yesterday that they will make principal forgiveness towards modifying certain sub-prime, Pay-Option and prime two-year hybrid mortgages qualifying for its National Homeownership Retention Program.

Aside from the help of the Bank of America, the Obama administration is actively working on a plan to help both jobless workers and those who owe more than their homes.  According to Herb Allison, Treasury assistant secretary for financial stability, the administration has come up with some interesting ideas to enable some additional people to…