First time homeowners intending to e-file a 2009 tax return to quickly get that homebuyer tax credit in the bank that much faster, have been forced to grab a book of stamps. The attempted fraud surrounding the First Time Homebuyer Tax Credit has been so rampant that the IRS is forcing the capture of this credit occur via paper returns using snail mail. The forms to be used are numbered 5405 and have just been released. The change requires additional documentation demonstrating legitimacy including driver’s license, proof of residency and a signed mortgage statement.
The final numbers are out for 2009 foreclosures and they are unbelievable. RealtyTrac reports that one in forty-five households were in default in 2009; these equates to more than 2.8 million households. The great news is that only a little better than 870,000 were actually taken in foreclosure proceedings. California, Florida, Illinois and Arizona accounted for over 50% of all foreclosures in 2009.
Ending the week, average mortgage interest rates dropped slightly to 5.34%. Jumbo’s are averaging 6.21%. Analysts expect that these numbers will continue in this realm for a while longer. Demand for new mortgages remains weak.
