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The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following facts provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor about your unique situation.

1. Eight grand, new buyers: This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

NOTE : The Obama administration has put out the official word: Starting soon, first-time home buyers nationwide will be able to turn their $8,000 federal tax credits into cash for use at closing if they use Federal Housing Administration mortgage financing.

Please contact us if you have any questions !

info@AvalarCalifornia.biz

Thank you.

Our mission is to provide educated assistance for investors looking to increase their real estate portfolios. We research economic and population projections to identify metropolitan areas with favorable growth outlooks. We work with our network of strategic business partners giving us the ability to source specific property acquisitions and projects. We negotiate favorable terms for our clientele to achieve the greatest amount of leverage for their investment goals. We build upon our collective experience, expertise and relationships to produce more than properties. We provide personal service for your success. In this rapidly moving market, that’s hard to find.

These properties are being sold by banks, hedge funds and asset managers. We are closely associated with these organizations. We receive and offer properties for sale, in various places in the United States, to our investors, affiliates and the public at deeply discounted prices. We have designed a turn key approach to acquiring these properties consisting of single family homes, duplexes, fourplexes, small and large apartment buildings.

WASHINGTON – The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.

Borrowers, however, are being advised to be patient in their efforts to get help because mortgage companies are likely to be flooded with calls.

Government officials, launching the "Making Home Affordable" program also acknowledge that the initiatives are only a partial fix for a sweeping problem that has helped plunge the U.S. economy into the worst recession in decades. In fact, tens of thousands of homeowners in some of the most battered real estate markets — concentrated in California, Florida, Nevada and Arizona — won't be eligible for the two programs.

"It's not intended to prevent every foreclosure or to help every homeowner," a senior Treasury Department official told reporters. "It's really targeted at responsible homeowners."

There was also skepticism that banks would be willing to participate.

"I've just seen so many of the programs not work," said Pava Leyrer, president of Heritage National Mortgage in Randville, Mich. "It gets borrowers hopes up. They call and call for these programs and we can't get anybody to do them."

The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up to 4 million homeowner, the second to refinance up to 5 million homeowners into more affordable fixed-rate loans.

For the modification program, borrowers who are eligible will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program, which runs through 2012.

Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009, or earlier. Mortgages for single-family properties that are worth more than $729,750 are excluded.

Lenders could reduce a borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the mortgage is repaid.

If the plan works as intended, it could be a big plus for borrowers like Nick Kavalary, a network cable installer who lives outside Milwaukee.

Kavalary, 42, has been struggling with JPMorgan Chase & Co. to get a loan modification. He was finally approved for one this year, but it only cuts his interest rate to about 9.8 percent from 10.75 percent. Even at the lower rate, he said, making the payment is nearly impossible.

"If I can't pick up a second job, I'm going to lose this house," he said. "With the job market being the way it is, nobody's hiring nobody."

For the refinance program, only homeowners whose loans are held by Fannie Mae or Freddie Mac are eligible and have until June 2010 to apply.

Consumers should contact their loan servicer — the company that sends out their monthly bill — to find out if their mortgages are held by Fannie or Freddie. The two mortgage finance companies own or guarantee almost 31 million home loans — more than half of all U.S home mortgages.

Many mortgage brokers, however, are critical. They argue the fees imposed by Fannie and Freddie over the past year make it difficult for borrowers to afford to refinance. The two companies, which are now government controlled, have yet to detail how they will implement the plan, or whether any fees will be rolled back.

Meanwhile, action to put in place another part of Obama's housing plan is expected soon on Capitol Hill.

House Democrats agreed Tuesday to narrow proposed legislation that gives bankruptcy judges the power to change the terms of mortgage loans for debt-strapped borrowers.

In the latest version of the bill, judges would have to consider whether a homeowner had been offered a reasonable deal by the bank to rework his or her home loan before seeking help in bankruptcy court. Borrowers also would have a responsibility to prove that they tried to modify their mortgages.

A full vote in the House could come as early as Thursday.

On the Net:

http://www.FinancialStability.gov

1. France, 80
2. Switzerland, 79
3. United States, 78
4. Luxembourg, 77
5. Australia, 76
6. Belgium, 75
7. Italy, 74
8. Germany, 73
9. New Zealand, 72
10. Denmark, 71

LaDonna Mullins was found guilty by a jury on July 25, 2008, of four counts of wire fraud, for her part in implementing a complex mortgage fraud scheme.  The verdict was handed down following a fourteen day jury trial before U.S. District Court Judge Marcia S. Krieger. The jury deliberated for a day and a half before reaching their verdict.  

According evidence presented during the trial, LaDonna Mullins worked as a real estate agent doing business through “LaDonna’s Realty and Management,” which was located in Denver, Colorado. 

Starting in 1999 through in 2001, the defendant, aided and abetted by others, devised a scheme to defraud and to obtain money and property by means of fraudulent representations and promises from mortgage companies that funded federally insured loans. As part of the scheme, Mullins and others working with her would locate buyers who desired to purchase a residence but were unable to qualify for a mortgage using the buyers’ accurate credit history, income and employment, and/or other financial information. 

The defendant and others working with her would assist buyers who could not qualify for an FHA-insured mortgage legitimately by one or more of the following means: (i) obtaining a false Social Security number (“SSN”) for the buyer, which would conceal the buyer’s unfavorable credit history; (ii) creating false W-2s, tax returns or other income documents, which would inflate or wholly create income that would purportedly be available for the buyer to make mortgage payments; (iii) creating false verifications of rent (“VOR”) or employment (“VOE”) to support false information about the buyer; (iv) creating false alternate credit letters, which would create an appearance that the buyer had a history of paying debts timely; and (v) creating fake “gift letters,” which falsely stated that the buyer had an appropriate source of funds for the down payment, and/or other false financial information.

“Mortgage fraud is ravaging our economy and will be dealt with accordingly,” said United States Attorney Troy Eid.

“Her fraudulent actions resulted in the foreclosures of Colorado homes which have added to the destabilization of the real estate market,” said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.

A real estate agent and two former loan officers in Lee's Summit, Mo., are among 17 defendants indicted by a federal grand jury for their roles in a $12.6 million mortgage fraud scheme that involved 25 residential properties in Lee's Summit, Mo., and Raymore, Mo., announced U.S. Attorney for the Western District of Missouri John F. Wood.

"This is one of the largest mortgage fraud cases ever prosecuted in our district, and illustrates that this is a problem that affects not only low-income neighborhoods, but also more affluent suburbs," U.S. Attorney Wood said. "Mortgage fraud poses a significant economic threat and directly impacts the well-being of our neighborhoods. A number of financial institutions suffered significant losses and innocent homeowners in the targeted subdivisions continue to experience the fallout of this alleged scheme as many of these houses are now sitting empty, neglected and in foreclosure. We will continue to vigorously prosecute those who engage in mortgage fraud, and our efforts should help restore the integrity of the housing market."

The indictment alleges that Clark, a real estate agent, along with Jordan and Guerra, former mortgage loan officers at separate Lee's Summit, firms, were involved in a conspiracy with 14 property buyers - including six California residents - to defraud mortgage lenders between June 2005 and May 2007. According to the indictment, the defendants were involved in buying and selling new homes in the Raintree and Belmont Farms subdivisions of Lee's Summit and the Eagle Glen subdivision in Raymore. Buyers allegedly purchased the homes at inflated prices, obtaining mortgage loans by providing false information to mortgage lenders, then keeping the extra proceeds. Buyers created shell companies for the purpose of receiving those kickbacks from builder Jerry Emerick, doing business as Ty Construction and Residential Contracting LLC, the indictment says, with kickbacks ranging from $60,000 to $125,000 on each house. Emerick will be charged separately for his role in the scheme.

"The FBI views mortgage fraud as a significant and growing crime problem and an area of concern," said FBI Assistant Special Agent-in-Charge Daniel D. Jones. "Combating significant fraud in this area is a priority because mortgage lending and the housing market have a significant overall effect on the nation's economy. The FBI continues to work closely with its government and industry partners to ensure pertinent data is shared in a timely fashion. We strongly support joint investigations to effectively utilize all of our limited resources while strengthening investigations by tapping into each agency's expertise."

According to the indictment, Emerick determined the actual sales prices he wanted for the new homes, based on the cost of construction plus a reasonable profit. Clark then listed the new homes for sale at inflated sales prices, in order for the buyers to obtain loan proceeds in excess of the sales prices that Emerick wanted to receive. Clark and Emerick structured the sales in a way that the buyers would receive money from the loan proceeds without the knowledge or consent of the lenders. Buyers created fictitious business entities, the indictment says, opening bank accounts in the names of those entities. They allegedly submitted fraudulent invoices and other documentation to title companies closing the loans, and to mortgage lenders, claiming that they had provided work and services for which they were entitled to receive loan proceeds.

Mortgage lenders approved 25 loans totaling $12,616,990, according to the indictment. From that total, the indictment says, buyers received approximately $2,343,337 without the lenders' knowledge. Clark allegedly received approximately $381,495, and mortgage brokers received commissions.

Clark and Howard solicited potential buyers for the residential properties. Howard also obtained false Social Security numbers for buyers to use in obtaining loans, the indictment alleges, and purchased two properties from Ty Construction, as well as other properties from other sellers.

Brown, a self-employed insurance agent doing business as The Brown Insurance Agency in Kansas City, Kan., obtained insurance for properties purchased. Brown also obtained and utilized two false Social Security numbers and purchased three properties from Ty Construction, as well as other properties from other sellers.

Simpson purchased four properties from Ty Construction. Salas purchased three properties from Ty Construction. Smith, Nshanian and Romero each purchased two properties from Ty Construction. Jackson purchased one property from Ty Construction, as well as three other properties from others. Edwards purchased one property from Ty Construction, as well as another property from another seller. McClain, Jones, Cadenhead and the Williams each purchased one property from Ty Construction.

In addition to the mortgage fraud conspiracy, the indictment charges various defendants with 13 counts of interstate transportation of money obtained by fraud and 12 counts of wire fraud, all related to financial payments conducted during the conspiracy. Howard also is charged with four counts of money laundering, Clark with two counts of money laundering, and Simpson and Salas with one count each of money laundering, all related to financial transactions of funds derived from unlawful activity.

Today's indictment also contains a forfeiture allegation against Howard, which would require him to forfeit to the government any property derived from the proceeds of the alleged offenses, including $12,616,990.

According to the District Attorney’s office, in February 2008, Vargas fraudulently acquired a property in Rancho Cucamonga that belonged to an elderly Rancho Cucamonga couple. Vargas completed a Grant Deed and forged the victims' signatures, granting the property into his name. Vargas recorded the Grant Deed with the San Bernardino County Recorder’s Office and became the owner of record of the residential property. The victims owned this property outright with no mortgage owed.

Vargas immediately took out a loan on the property in the amount of $250,000. The loan closed in March 2008, and after loan fees were paid, $205,828.64 was wired into Vargas bank account. During the loan process the property was appraised at $1,200,000. After an extensive criminal investigation by District attorney Investigators, it was determined the victims didn't know Vargas nor did they give him their property.

The victims filed a complaint with the San Bernardino County District Attorney's Real Estate Fraud Unit, which filed Felony counts of Grand Theft, Forgery, Filing a False/Forged Document with the County Recorder’s Office, and Financial Elder Abuse. Vargas was transported and booked into the Sheriff's West Valley Detention Center in Rancho Cucamonga. Bail was set at $1,450,000.

Our Avalar office in conjunction with a major investment group who has purchased bulk wholesale priced homes through banks, hedge funds and developers at greatly reduced prices wish to re-sell them to savvy investors at 70-80% off market value. The homes have all been pre-inspected and are considered to be in stable residential neighborhoods with good rental markets. The properties are managed and there is even an exit strategy (if you choose) to resell the homes to the tenants on a “lease to own basis” after 1 year with a proposed profit of 50-90% on your investment.

A great way to diversify investments (even tax deferred 401k,  IRA or 1031 exchange) into well priced & professionally managed real estate.

Please register to confirm your attendance (space is limited).

See invitation for details.

It’s a great time to buy well priced real estate ! 

AMERICA FOR SALE

Buy Homes for Pennies on the Dollar!

Exclusive 1 day event!

We have BANK-LIQUIDATED inventory. Choose from 100’s of Homes

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The Market is changing rapidly,

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DATE: Tuesday, December 2^nd, 2008

TIME: 6:00pm to 7:30pm

LOCATION: 473 Alisal Road, Solvang CA 93463 Bit O’ Denmark Restaurant (Public parking across the street)

RSVP: REOsales@avalarcalifornia.biz

or call 805-693-4083

*ADMISSION is FREE with Pre-Registration

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