Many want to know and ask if it is OK to claim the credit if they sell or have sold to a family member in an Arms-Length Transaction.

I keep getting questions and upset commenters on my blog about land contracts being OK in Michigan for the $8000.00 tax credit.

What is an Arms-Length Transaction?

Investopedia Says:

The concept of an arm's length transaction commonly comes into play in the real estate market. When determining the fair market value of a piece of property, the price for the property must be obtained through a potential buyer and seller operating through an arm's length transaction, otherwise, the agreed-upon price will likely differ from the actual fair market value of the property.

A transaction among parties, each of whom acts in his or her own best interest.
 This would include a father-son, mom and kids, relatives, wife to husband with a different last name.

For instance, if I wanted to sell my house to Christa and Bob, I would sell it at a lower price than to a normal buyer.

You would do the same right?

The rules for claiming the land contract tax credit are fine, but they still must follow the law that you must do a Arms-Length Transaction to get the credit.

It is sad to read the 98 comments where many ask this question about selling to a relative in an Arms-Length Transaction and wanting to claim the credit.

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Missy Caulk & Team can be reached at 734-216-2822 or email: Missy@MissyCaulk.com

Our TEAM of 6 buyer associates are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.

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 When we are working with Listing a Short Sale in Ann Arbor. There are two things we love to hear.

HUD is approved.

Please make sure  funds are in the  form of certified funds.  Thanks
 

Loan Adjustor Specialist
Wells Fargo Home Mortgage
3476 Stateview Blvd.
Fort Mill, SC 29715

The second set of words we like to hear if we are working with a Buyer purchasing a Short Sale in Ann Arbor.

HI We have clear to close on Bing.

Thank You!
Wendy Passerman
Loan Officer
Chase
1909 Fort St.
Wyandotte, MI. 48192

1. HUD Approved
2. Clear to Close

Yea, I'm doing a Happy Dance today in Ann Arbor.

Both emails in one day.

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Missy Caulk & Team can be reached at 734-216-2822 or email: Missy@MissyCaulk.com

Our TEAM of 6 buyer associates are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.

Thinking of selling your home?

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How To Appeal Your Property Assessment

There are five workshops being held in the following locations.

Wayne County:

Detroit:

Friday, January 30 at 7:00PM. Wayne Community College, Eastern Campus, The Eastern Campus is located on Conner Road adjacent to I-94.

Macomb County:

Macomb Township: Saturday, February 7 at 2:00PM. Clinton/Macomb Public Library, North Branch, 16800 24 Mile Road, 48042

Washington Township:

Friday, March 6 at 7:00PM. Washington Township Hall, 57900 Van Dyke (1/2 mile north of 26 Mile Road)

Oakland County:

Troy: Wednesday, February 11 at 7:00PM. Troy Community Center, 3179 Livernois Rd. (room 304)

For More Information Call 313-278-8383

This is an important year to consider appealing you property assessment. This year the CPI is 4.4% . Your CV will increase. Your SEV will likely decline. Your TV will likely increase. Did I mention that we will define terms at the workshops?

You owe it to yourself to attend and find out how to do this, as many folks in Michigan are paying taxes on what the home sold for several years ago.

Currentley there is a Bill in the Michigan Legislature on how to give the homeowners relief if they are selling a home in Michigan and already bought a new one. The bill is to allow you to continue to pay taxes on both homes with the Homestead Exemption.

***Originally announced on Ann Arbor Real Estate Talk blog***

Last week I received my Short Sale Certification and will currently be available to assist homeowners in Washtenaw County that are in this unfortunate situation.

The first step will be to see if we can get you a loan modification of your current mortgage by working with your lender.

In 2005 we had the highest number of home mortgages adjustments.(ARM)

In 2007 we were only selling about 10% of homes selling short. That has risen now risen and will continue to rise in 2010 as many ARM (Adjustable Rate Mortgages) are due to re-adjust again.

The banks are now more willing to work with you to adjust your loan, or sell your home short of what you owe.

In Michigan we have a 6 month redemption period by statute where a homeowner can pay all the fees, bring their home mortgage payments current and "redeem" their home. (It is very rare when this occurs but it is the law).

For a bank to wait for 3 months to begin the foreclosure process, then a sheriff sale, then another 6 months to put the home on the market as a RE0( Real Estate Owned) property, they are loosing a lot of money.

More and more of the banks are now willing to work out a short sale solution.

The most important thing to do if you are a homeowner who is late on your house payment is to speak to a Realtor that explain the process to you. There are so many ins and outs that you need to make sure your Realtor knows ALL the steps necessary to help you.

I have dealt with Short Sales but wanted more training to be able to manage them in an efficient manner and provide all the documents to you the bank will require.

I'll post on Short Sales in more detail in the coming weeks, but if you are in that situation, please don't wait another month.

Give me a call, for a private consultation at 734-821-0757.

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