August 5, 2011
- According to Think Big, Work Small, home prices continue to drop, but closing costs continue to rise because of HVAC, Reg Z and RESPA. On an average $200,000 sale, they’ve gone from $3,741 to $4,070. A recent article in Banker & Tradesman noted that closing costs inMassachusettsexceeded the national average and were $4,244 on a $200,000 mortgage. Loan origination fees have risen from 8.8% to 10.3%, a direct result of government regulation to keep origination fees down.
- Remodeling activity is down nationwide except in the Northeast where it showed a modest climb.
- Inman News reports that the nation’s homeownership rate is projected to drop from today’s 66% to 64%, the same as in 1968. That represents more than 10 million people who will go from homeownership to “rentership” in the next 5 years.
- An article by Ken Harney in Inman News on the July 25th audit found that the IRS
- Allowed taxpayers to file amended returns to receive more than one years worth of first time home purchase tax credits – $7,500 repayable credit and the non-repayable $8,000 credit.
- Allowed taxpayers to switch the year of purchase from 2008 to 2009 or 2010 when you didn’t have to repay the credit without public record or documentation of home purchase.
- Paid $234 million in federal tax credit to 302,000 taxpayers for home energy improvements without evidence of homeownership let alone installing new windows, insulation, or anything else.
- Paid $10.1 million to 1326 taxpayers whose date of death preceded the supposed date of purchase.
So did you read about this anywhere in the media?