Tax Breaks for Mortgage Insurance

In an article posted Tuesday, CNN shared a list of "temporary" tax breaks that have been extended into 2014, including breaks for teachers, commuters, and parents of college students. CF Funding is happy to share two great tax breaks for homeowners, including deductions for mortgage insurance premiums:

1. For those who may have purchased a home with a small down payment, and therefore were
required to pay mortgage insurance, this break would allow you to deduct the cost of your premiums (if you itemize your deductions).

2. For those who have foreclosed on a home, or sold their home for less than what is owed, this tax break allows you to exclude that remaining debt from your income. Normally, the IRS would count the remaining debt as taxable income.

Another great tax break worth noting is that "commuters may reduce their pre-tax income to account for their commuting costs... those who drive to work and pay for parking are allowed to exclude more (250 per month) than those who use mass transit (130 per month)."

According to CNN, the bill has been sent to President Obama and is awaiting signature.

Foreclosure Activity Decreases to Lowest since 2006

CF Funding is happy to share that foreclosure activity has been reported at its lowest levels since before the housing crash. In the first half of 2014 (January through June) there were 613,874 foreclosure filings, which is a 23 percent decrease from the first half of last year. As CF Funding mentioned earlier this month on their blog, the Obama administration is taking steps to continue to decrease foreclosures, and the lender expects that more improvement is to come in the next few years as the economy improves.

The Midyear 2014 U.S. Foreclosure Market Report, released this week by RealtyTrac, revealed that one in 214 homes in the U.S. reported a foreclosure in the first six months of this year (about 0.47 percent). Foreclosure activity for June totaled 107,194 properties, which is down 2 percent from May 2014 and down 16 percent from a year ago. Ten states reached their lowest levels of foreclosure activity since the housing crash in 2006, including Texas, Georgia, Colorado, Tennessee, Arizona, and Nevada. CF Funding is licensed in Texas, Florida, and Colorado, and the lender was happy to see such high foreclosure improvement in those states.

Only nine states saw an increase in foreclosure activity in the first half of 2014 in comparison to the first half of 2013. Those states include New Jersey (up 54 percent), Maryland (up 18 percent), and Iowa (up 10 percent).

It may be disheartening to see that Illinois is ranked at the country’s third highest foreclosure rate in the first half of 2014, at one in every 123 housing units. However, Illinois has a longer foreclosure filing process than many other states in the country. This means that although foreclosures are recovering in Illinois, the statistics reporting a decrease in filings may lag behind other states by a few months. CF Funding is happy to share that Illinois foreclosure activity did decrease 16 percent in comparison to the second half of 2013, and 32 percent from a year ago. The Chicago metro area also saw a 30 percent decrease in foreclosure activity in the first half of 2014 compared to a year ago.

Those who are in danger of foreclosure should contact CF Funding today to take advantage of free credit repair services with a refinance. The lender has assisted thousands of homeowners to regain positive equity in their homes. Call 888-344-4080 or visit www.cffunding.com today. 

California's Short Sales at Lowest Since 2008

CF Funding is happy to share that California’s pending home sales increased significantly in March, while short sales dropped to a six-year low. According to the California Association of Realtors (CAR), “pending home sales increased more than usual [in March] and rose to the highest level in eight months… meanwhile, the share of short sales has fallen to levels last observed in 2008.”

Pending home sales increased 17.8 percent, and the PHSI (Pending Home Sales Index) rose from 97.1 in February to 114.4 in March. This is the highest index since July 2013. Although March of 2013 had about 9.9 percent more pending sales, the CAR says this decline “has been tapering over the past few months.” Equity sales, defined as non-distressed property sales, have increased over the past year and saw a 2.6 percent increase in March, reaching 87.6 percent. CF Funding expects that equity sales will continue to rise as the Spring season brings out more homebuyers and the economy continues to improve. In March 2013, equity sales made up only 71.8 percent of sales.

30 out of 38 counties in California saw a decrease in distressed sales month-to-month. Counties with the least amount of distressed sales included Alameda, Marin, San Diego, and Santa Clara. Alameda, Marin, and San Mateo also experienced the best year-over-year improvement (in reduced distressed sales), as well as Madera and Monterey counties. Declines in short sales and REO sales were significant across the state of California in March, falling from 15 to 12.4 percent. The C.A.R. says one year ago distressed sales were more than twice as high, reaching 28.2 percent.

As seen in the chart, equity sales have increased significantly since January 2012. Short sales and REO sales in California have drastically decreased, with REO sales declining 64 percent.

The inventory of properties declined in March (especially non-distressed), with the Unsold Inventory Index dropping from 4.8 months to 4 months, and the supply of REOs dropping from 3 months to 2.8 months. The short-sale inventory fell from 5 months in February to 4.7 months in March.

CF Funding is licensed in California, as well as Illinois, Colorado, Tennessee, Florida, and soon Texas and Virginia. Homebuyers in these states who are in need of a mortgage should contact CF Funding Corporation for a free consultation, as the lender compares rates and programs from multiple lenders. Call 888-344-4080 or visit www.cffunding.com for more information.