Friday Facts August 5, 2011

FRIDAY FACTS

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?

 

 

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