Bush administration allows three-year window

President Bush signed into law Thursday a bill creating a temporary tax break for homeowners who are able to persuade lenders to forgive part of their debt, and extends a tax deduction for some families with private mortgage insurance.

For the next three years, the IRS won’t count as income debt forgiven by lenders when troubled borrowers negotiate short sales or workouts on their primary residence that involve forgiveness of part of their debt.

HR 3648, the Mortgage Forgiveness Debt Relief Act of 2007, also extends for three years a tax deduction allowing families earning $109,000 or less to deduct all or part their private mortgage insurance premiums from their taxable income — which could save them an average of $350 a year.In signing the bill, Bush said that not counting forgiven debt as income for tax purposes “will increase the incentive for borrowers and lenders to work together to refinance loans — and it will allow American families to secure lower mortgage payments without facing higher taxes.”

The deduction for private mortgage insurance allows families with an adjusted gross income of $100,000 or less to deduct all of their premium payments. Families with incomes up to $109,000 are eligible for partial deductions.

The private mortgage insurance deduction was first approved late in 2006 and initially applied only to the 2007 tax year. With the passage of HR 3648, the deduction has been extended to mortgages originated between 2007 and 2010. Extension of the tax deduction for mortgage insurance premiums was part of the Mortgage Forgiveness Debt Relief Act of 2007 approved earlier this month by both the U.S. House of Representatives and the U.S. Senate.

Heating Tips

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Purchase an efficient heating system. If you are thinking about purchasing a new heating system, look for ENERGY STAR models. These are the most energy efficient models on the market and will save energy, save money, and help the environment.Can’t heat up any faster. Your house won’t warm up any faster if you raise the thermostat setting. When your heating system is on it runs at the same rate regardless of the temperature setting.Keep doors closed. Shut the door or at least try to minimize the number of times that doors to the outside are opened and closed. Each time you open the door cold air enters the house.Seal ducts properly. Leaks develop in all air ducts over time. Sealing these leaks in ducts can reduce heating costs by up to 20% with reductions of 10% extremely common!

Take advantage of the heat from the sun. Open shades on the southern and eastern windows during the day. Close these shades when the sun goes down to keep the heat from escaping.

Don’t let heat go up the chimney. Make sure the fireplace flue is closed when you are not using it.

Distribute the heat evenly. Ceiling fans set at slow speed push warm air away from the ceiling and move it around the room without creating a chilling breeze. This spreads the heat more evenly and will make you feel more comfortable.

Turn off the pilot light. If your heating system has a pilot light turn it off during the summer. A pilot light typically costs $3-$5 per month to keep lit so why not turn it off when you aren’t using it.

Tune up your heating system. Have your heating system tuned and inspected by a service professional. Losses from a poorly maintained system accumulate over time – sometimes at a rate of 1-2% each year.

Insulate properly. Make sure that your wall and attic are properly insulated. Adding batts of fiberglass insulation in your attic is one of the most cost effective savings measures and one that you can do yourself.

Seal Leaks. Leaks develop in all air ducts over time. Sealing these leaks in ducts can reduce heating costs by up to 20% with reductions of 10% common!

Lower your thermostat. Lowering the thermostat by as little as 1 ° F typically reduces your heating bill 1-3%. Most energy experts recommend setting the thermostat to 68 ° F or less, and several degrees cooler overnight. Make sure you lower you thermostat if you are leaving the house for any period of time; you use much less energy to heat the house up when you return than to keep it heated while you are away.

Conserve with a programmable thermostat. A programmable thermostat lets you easily lower the thermostat during periods when no one is home, as well as lower the temperature overnight without having to freeze in the morning while waiting for the heat to rise. You might save as much as 20% on your heating costs and recover your investment in the first year.

Use the sun’s heat. Open drapes and shades during the day to let in the heat from the sun.

Insulate your hot water pipes. Hot water heating systems use a network of pipes to distribute heat through your house. Uninsulated pipes waste energy. Wrapping pipes that are readily accessible with insulation is easy to do and fairly inexpensive. Pipe insulation made of fiberglass or foam can be found in all building supply stores. Use insulation with a wall thickness of 3/4 in. for fiberglass and 1/2 in. for foam.

Single pane windows can be a real pain. Not only are they inefficient, but worn and dirty windows can be unsightly as well. Replacing them with energy-efficient windows is a major investment, but in colder climates the heating savings can be considerable.

Caulk. Caulk windows and doors to prevent drafts.

Insulate outlets. Electric outlets let cold air into the house. Remove the outlet covers and insert special insulation underneath. Use special insulating plugs in all outlets that are not being used.

Orange Town Green  and the  United Church of Christ

In  November  of 2007 there were  8 homes that closed within the month for  Orange CT This is  a  decrease of  3 units as  there were 11  homes that closed in  November of 2006. The Average list price for the homes that closed in  Orange for  November of 2007 was $467,963

The Average list price for the homes that closed in  Orange for  November  of 2006 was $471,300

The Average sale price for the homes that closed in  Orange for  November of  2007 was $443,375

The Average sale price for the homes that closed in  Orange for  November of 2006 was $458,118

The Average Market time for the homes that closed in  Orange  November of 2007 was  54 days.

The Average Market time for the homes that closed in Orange  November of 2006 was  64 days.

3  homes went under deposit in  Orange CT in the month of November. The average list price of the homes that went under deposit was $15,433. The average time on the market for these  Orange CT homes were  102 days.

                                                                       January –  November Market Statistics for  Orange CT

In  Orange CT for the period of January to  November of 2007 there were  118 properties sold.

In  Orange CT for the period of January to  November 2006 there were 121 properties sold.

In  Orange CT for the period of January to  November in 2007 the average list price was $458,966 the average sale price was $439,966 and the average market time was  64 days.

In  Orange CT for the period of January to  November in 2006 the average list price was $480,845 the average sale price was $463,738 and the average time on the market was 54 days.

** The above  statistics are for single family homes only and do not include condo’s or Multi-family homes  in  Orange CT

In comparing year over year longer term data Orange CT,  it appears that there is still a slight  downward trend in the average sale price for homes, as well as an increase in the days on the market for the same period in  Orange CT.

These statistics are similar to many of the towns in New Haven County CT and represent the ongoing weakness in the market as compared to previous years. What must be stressed, however, is that these home  figures still represent a healthy amount of sales. Orange’s average sale price has not dropped as much in comparison to some other towns.

Selling a home in  Orange CT or other New Haven County towns is heavily dependent on pricing your home properly and picking an agent that will create an online market presence for your home. As a home seller, you need to be aware that the market in  Orange CT and many other New Haven County  communities has changed over the last two and a half years.

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The above information about Orange CT  was provided by Kim Busk & Donna Springer, The CT Home Team in  Connecticut. We can be reached via email  at info@CTHomeTeam.com  or by phone at 203-415-6388.   We have a passion for Real Estate  and would love to share our marketing expertise! We welcome the opportunity to earn your business.

For  Connecticut and  Orange CT  Real Estate and homes see CTHomeTeam.com. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at  our  Create a Custom Search page.  

We service the following towns in New Haven County Connecticut:   Milford, Orange, Woodbridge, Bethany, and New Haven CT
For Milford Connecticut Real Estate Information see MilfordCTShoreline.com
NewHavenCTHome.com for Westville and East Rock New Haven CT Information.

Yale Mortgage Loan Program

Several area banks have established special home mortgage loan programs for Yale employees. For particulars follow the links below:

• Citizens Bank
• Bank of America
• NewAlliance Bank
• People’s Bank

The Bush administration announced a plan that freezes interest rates for some credit-challenged homeowners who purchased their homes with subprime loans. President Bush called for Federal Housing Administration reforms to lower borrowing requirements for FHA conforming loans, and a five-year freeze on some subprime mortgage loans. Eligible borrowers are those holding adjustable rate mortgages that are about to reset to higher rates and who are current in their payments.

But not everyone is cheering. A recent poll by the National Taxpayers Union found that almost half of U.S. adults think a federal bailout is the wrong way to go. Tax dollars shouldn’t be used because many homebuyers who are now in trouble deliberately bought more house than they could afford. Further, many blame Wall Street, which sold mortgage-backed securities to investors while underplaying the risks of subprime loans.

While the debate goes on, other help is on the way. This week, mortgage interest rates fell to two-year lows. Some borrowers may be able to refinance their loans into safer fixed-rate without waiting for a federal handout.

Read the full story here.  

RISMEDIA, Dec. 7, 2007“President Bush announced a plan Thursday that offers foreclosure relief to 1.2  strapped homeowners to help them avoid losing their properties.

It includes a temporary freeze on low, introductory mortgage-interest rates that could otherwise increase dramatically in the next few years.

But the plan is limited to those current with their monthly payments. It excludes anyone more than 30 days late at the time the mortgage would be modified or anyone who has been more than 60 days late at any time within the previous 12 months.

According to reports, it also only covers borrowers with adjustable rate mortgages (ARMs) resetting beginning in 2008 and leaves out any who are judged capable of continuing to make mortgage payments at the higher reset rates.

For the Full story click here.

The Crucial Role of Thermal Insulation Inadequate insulation and air leakage are leading causes of energy waste in most homes. Insulation saves money and our nation’s limited energy resources. It can also make your house more comfortable by helping to maintain a uniform temperature throughout the house. Walls, ceilings, and floors will be warmer in the winter and cooler in the summer. Insulation can also act as a sound absorber or barrier, keeping noise levels down. It is possible to add insulation to almost any house.

           

                                                                                                                          You may be able to do the job yourself if the structural framing is accessible–for instance, in unfinished attics or under the floor over an unheated space. Or, you may prefer to hire an insulation contractor. In either case, it is important to choose and install the insulation correctly. The amount of energy you conserve will depend on several factors: your local climate; the size, shape, and construction of your house; the living habits of your family; the type and efficiency of the heating and cooling systems; and the fuel you use. Once the energy savings have paid for the installation cost, energy conserved is money saved–and the annual savings will increase if utility rates go up.  

To learn more about insulating your home and energy saving ideas  click here.  

One of the most important things to remember when building your New Home in Milford CT (or elsewhere) is that you will be asked to make decisions early in the construction process. This is because time is needed to order and receive materials and also because some units are too large to install in the later stages of construction. A one piece Shower or Tub is a good example of this.

                                                                                                                                                                                                     Each stage has an approximate duration that the builder will strive to meet. However, a number of factors outside of the builder’s control, such as adverse weather conditions and availability of labor and materials, can extend these durations. Your builder will give you an estimated completion date that will be approximate at first but more precise as your home nears completion.

To view a list of 12 stages of the Home Building process please visit our website.

When you put your home up for sale, it is hard to objectively look at your surroundings.   Instead of the window that needs caulking; you see the view of the tree where your first swing hung.   Instead of a refrigerator plastered with artwork, you see a visual progression of your child™s school years.   However, it is important to remember that prospective buyers do not share your memories.   They will see what is directly in front of them, minus the nostalgia!

For a FREE copy of our online book 450 Ideas to Help Your Home Sell FASTER! Click on the picture above.

How to Set a List Price for Your Home

Setting the list price for your home in Milford, Orange or Woodbridge CT, involves evaluating various market conditions and financial factors. During this phase of the home selling process,  we will help you set your list price based on:

• pricing considerations
• comparable sales
• market conditions
• offering incentives
• estimated net proceeds

Pricing Considerations “ Find a Balance Between Too High and Too Low

When setting a list price for your home in New Haven CT, you should be aware of a buyer™s frame of mind. Consider the following pricing factors:

If you set the price too high, your house won™t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your REALTOR ^® to “Bring me any offer. Frankly, I™d take less.” But compared to other houses for sale, your home simply looks too expensive to be considered.

Visit our website for more information on this topic