Thank you for contacting me regarding home foreclosures and the homebuyer tax credit.

I am all too aware of the impact a declining housing market has on the economy. Florida is second only to California in home foreclosures. This crisis is forcing ordinary Americans into economic hardship and causing financial uncertainty for businesses throughout the State.

Earlier this year, I voted for the American Recovery and Reinvestment Act, which became Public Law 111-5. The bill extended the first-time homebuyer tax credit through November 2009 and increased the credit to the lesser of $8,000 or 10 percent of the sales price of the home, whichever is lower. The bill also repealed the recapture requirement for homes bought this year, allowing new homeowners to keep the savings without having to pay it back in subsequent years.

The homebuyer tax credit expires at the end of November. The Senate Finance Committee, of which I am a member, will likely consider an extension of the credit later this year, along with legislation extending other expiring tax provisions, such as relief from the Alternative Minimum Tax. I look forward to working with my colleagues to develop a strong and fiscally responsible tax bill that benefits hardworking taxpayers throughout the State of Florida.

I appreciate hearing your views. I’ll keep your concerns in mind as we work on tax and other legislation aimed at reviving the housing market. Please don’t hesitate to contact me in the future.

Sincerely,
Senator Bill Nelson

The NATIONAL ASSOCIATION OF REALTORS® sought clarification from SBA after hearing that lenders in some jurisdictions were making the loans to practitioners while others were not.

Having these loans available to individual real estate licensees without ambiguity potentially gives a shot in the arm to practitioners who are struggling with high business-related debt. The new loan program, called ARC (For America’s Recovery Capital), is an interest-free, deferred payment loan of up to $35,000. One of its intended uses is to help businesses get out from under ruinous debt.

Thus, if practitioners have maxed-out business credit cards (it has to be business-related debt; personal debt won’t qualify), they can pay that debt off with the far-more attractive SBA loan.

SBA’s two flagship loans, known as the Section 7(a) and Section 504 loans, are also open to individuals. The terms of these loan programs have been made more attractive recently, so practitioners have additional loan options that they might want to consider.

On the 7(a) loans, the SBA says, “To assist small businesses during the economic downturn, the American Recovery and Reinvestment Act authorizes SBA to temporarily reduce or eliminate loan fees for borrowers . . . and raises the loan guarantee from the current level to 90 percent.”

More information on the loan programs is included in a REALTOR Magazine video interview with NAR Government Affairs.

–By Robert Freedman for REALTOR® Magazine Online

Investment opportunities come and go, and these days, it is even harder to predict the financial success of many investments. Real estate, however, continues to outlast any long-term investment. Today is still a great time to consider Buying or Selling your home or property. I am a real estate specialist in the Cape Coral and Fort Myers Area. Through our advanced real estate computer network, I can show you the latest properties that are for sale.