First Time Homebuyer Credit Update

HUD Secretary announces that the $8,000 tax credit may be used as a down payment!
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Developed told REALTORS® gathered in Washington, DC last week for the NAR Midyear meetings that the Federal Housing Administration will permit its lenders to allow homeowners to use the $8,000 as a down payment.
Secretary Donovan said that important changes, which NAR has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
For indepth information on the First Time Homebuyer credit click here.

Foreclosure Rescue Scams

Bank Regulators Warn Consumers about Foreclosure Rescue Scams
The Office of the Comptroller of the Currency (OCC, the federal regulator of national banks) and the Office of Thrift Supervision (OTS, the federal regulator of savings associations) have both issued flyers warning consumers about foreclosure rescue scams. Both flyers provide concrete, practical advice on avoiding the kinds of high pressure tactics and abusive practices engaged in by the scammers. Families with equity in their homes are particularly at risk, but anyone paying for these services is likely to be sorry. Free counseling is available from HUD-approved counseling agencies.

OCC: Consumer Tips for Avoiding Mortgage Modification Scams and Mortgage Rescue Scams >

OTS: Foreclosure Rescue Scams/How to Avoid Becoming a Victim >HUD-Approved Counseling Agencies >