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Safe at home

At the urging of the Bush administration, six major mortgage lenders today announced a plan to rescue homeowners on the brink of foreclosure. The plan, called Project Lifeline, will allow homeowners who are 90 or more days overdue on their mortgages to suspend foreclosures for 30 days while they try to work out more affordable terms with lenders. Participating lenders include Bank of America, Citigroup, Countrywide Financial, J.P. Morgan Chase & Co., Washington Mutual and Wells Fargo. Homeowners already in bankruptcy or those who have a foreclosure date within 30 days do not qualify for the program. Borrowers in default of loans for investment or vacant property may not participate, either.

Scam alert

If you receive a phone call or e-mail with a promise of help obtaining a tax rebate from the federal government, hang up or delete the e-mail, says Florida Agriculture and Consumer Services Commissioner Charles Bronson. In one variation of the scam, individuals posing as employees of the Federal Commission Refund Department, a fictitious agency, promise to help consumers obtain their tax rebate check for a $29 fee that's withdrawn directly from the consumer's bank account. In addition, scammers posing as IRS agents call and ask for Social Security numbers and other personal information to verify the person's eligibility for a refund. "What these scam artists are trying to do is to obtain personal information, including bank account and Social Security numbers, so they can clean out your checking or savings account and open a line of credit in your name," Bronson says. "Don’t fall for it."

Questions about Amendment 1?

The Florida Department of Revenue (DOR) is the best source for up-to-date information, including documents and forms related to portability, the additional homestead exemption and the tangible personal property tax exemption. Here's a quick overview:

Increased homestead exemption. Homeowners will receive automatically. No action is necessary.
Portability is retroactive to Jan. 1, 2007. Clients who sold their homestead last year and bought a new home that qualifies as a homestead as of Jan. 1, 2008, must apply by March 1, 2008, to their county property appraiser to transfer their Save Our Homes benefit. A portability application form is available from the DOR Web site.
$25,000 exemption for tangible personal property. This tax applies to businesses and certain owners of mobile homes. It does not apply to homestead property. In order to receive the exemption, taxpayers subject to the tax must file a tangible personal property return with their property appraiser by April 1, 2008.
10% annual assessment cap for non-homestead property. The 10% cap does not apply until next year. No action is necessary in 2008.

Need a quick explanation of portability? Check out the Portability 101 link on the home page of floridarealtors.org.
You'll also find an Amendment 1 Frequently Asked Questions page.

Bargain shopping

Orlando and Jacksonville are among the 10 best cities for bargain house hunters, according to Forbes magazine. The editors define a bargain market as one where employment growth will burn off an over-abundance of inventory quickly. In naming Orlando to the No. 3 spot, the magazine noted that Orlando had fewer speculators than Miami and Tampa, and that it's adding jobs faster than those cities as well. At No. 8, Jacksonville's foreclosure rate is lower than most other major Florida cities, which will help reduce inventory levels.

Hometown Democracy misses the mark

The proposed Hometown Democracy constitutional amendment — which would require all zoning ordinance changes to go before voters — did not secure enough verified petition signatures for the November 2008 ballot. The group needed 611,009 verified signatures. Florida’s Secretary of State verified 545,827 — 65,182 shy of the mark. Hometown Democracy supporters pledge to press ahead to obtain enough verified petition signatures to get the measure onto the November 2010 ballot.

Money matters

From tax rebates and higher FHA loan limits to small business tax incentives, the economic stimulus package awaiting President Bush's signature seems to have something for everyone:

For borrowers: The FHA limit will increase to as much as $729,750 in high cost areas (to 125% of local median home prices) for loans approved on or before Dec. 31, 2008. The Fannie Mae and Freddie Mac limit will increase up to $729,750 for loans originated after July 1, 2007 to Dec. 31, 2008. Currently Fannie Mae and Freddie Mac are capped at $417,000. It appears the formula mirrors that used by FHA, with Fannie Mae and Freddie Mac loan limits increasing to 125% of the local median home price, but not to exceed $729,750.
For businesses: There are two tax breaks. The first is a $250,000 deduction for the cost of depreciable property acquired and placed in service during 2008. A second provision provides a 50% "bonus" depreciation deduction for the cost of leasehold improvements and certain other equipment placed in service during 2008.
For all taxpayers: The package includes a $600 tax rebate for individuals and $1,200 for couples who file a joint return. In addition, individuals with children (generally minor children or some older dependents) will receive rebates of $300 per child, with no limit on the number of eligible children. The rebate will phase out for those with adjusted gross income above $75,000 ($150,000 on a joint return).

The IRS will likely begin sending the rebate checks in late May, following the 2007 income tax filing season.

On our radar screen: New RESPA rules, which may be released for public comment at the end of the month. All that is known for certain about the rule at this point is that it will include a new Good Faith Estimate and matching HUD-1 statement. Stay tuned...