The Basics: Extended Home Buyer Tax Credit 2009/2010

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

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Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer's income.

Price
 

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

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Tips for Winter Driving

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Winter Driving

Winter is the most difficult driving season. Not only do you have snow and ice to deal with, but there are fewer hours of daylight as well. Before winter weather arrives, make sure your vehicle is in good condition, especially the tires, battery, and exhaust system. Never combine radial and non-radial tires on the same vehicle. On front-wheel drive cars, it is best to put snow tires or "all-season" tires on all four wheels, not just the front. Be sure the windshield washer container is filled with a freeze-resistant cleaning solution. Always carry emergency supplies in case you become stranded. (See below for a suggested list.) A Citizens Band (CB) radio and/or cellular phone can be very useful to you or another stranded motorist in case of an emergency. Remember to pull of the road to talk on a cellular phone.

Driving Tips:
Know your vehicle. Not all cars respond the same to icy, slippery roads. For that reason, knowing how to handle your vehicle and how it responds in various weather conditions is important. Your owner's manual will provide vital information about your vehicle's braking system, tire traction, and safety tips. Drivers should maintain winter driving techniques and caution even when roads appear clear. For those driving SUVs or 4-wheel drive vehicles, please remember that these vehicles react to ice just like any other vehicle. Overconfidence in your vehicle's abilities can lead to serious problems.

• Utah law requires the use of seat belts and child safety seats in all vehicles. Driving while under the influence of alcohol and/or drugs is prohibited. Laws are strictly enforced.
• Clear all snow and ice from your hood, roof, trunk, turn signal lights, tail and headlights, windows, mirrors, and fenders.
• Plan your route and be familiar with the maps/directions to avoid confusion.
• Check the weather reports and adjust your starting time.
• Inform others of your route and expected time of arrival.
• Always fill the gasoline tank before entering open country, even for a short distance, and stop to fill-up long before the tank begins to run low. Keeping the gas tank as full as possible will minimize condensation.
• Drive with extra caution. Start slow and easy from a stop and steer smoothly. No abrupt turning, braking or accelerating.
• Increase your following distance. The distance needed to stop on ice is twice as long as that you would need to brake under normal driving circumstances.
• Drive slower than the posted speed limit; remember that it is calculated for ideal weather conditions.
• You have better visibility using your LOW BEAMS when driving in a snow storm or fog.
• Use extra caution when driving on bridges, overpasses, tunnels, or areas without direct sunlight. Those areas often have black ice - a thin clear layer of ice which allows the dark underlying road surface to show through. Black ice forms when the temperature is around (even slightly above) freezing and the road is damp/wet from high humidity, fog, daytime snow melt, rain, or snow. Signs of black ice include a shiny road surface or when you no longer see spray from the tires of other vehicles but the road still looks wet.
• KNOW YOUR BRAKES. Your owner's manual will provide information about your braking system. Find out which type of brakes your vehicle has and follow the safety steps below.
  
  
  
  1. Anti-lock braking systems (ABS) offer significant advantages on slick roads, if used correctly. To operate ABS effectively, apply steady pressure to the brake pedal during the entire stop. ABS will automatically pump the brakes, if necessary, to keep the wheels from locking. Never manually pump ABS brakes yourself. Apply only steady pressure continuously until you come to a complete stop.
  2. If you don't have ABS, you should gently apply pumping pressure to your brakes during slippery conditions. Do not apply steady pressure to your brakes. Standing on your brakes will only cause wheel lock, and may result in your car spinning out of control.
  
  
  
  

• HANDLING SKIDS
  
  
  
  1. FRONT WHEEL DRIVE: Once you feel your car begin to skid, slowly remove your foot from the accelerator, until you feel your wheels regain traction control. (Do not attempt to brake!) As your vehicle's tires grab the road, slowly turn the steering wheel in the direction you want your front wheels to go.
  2. REAR WHEEL DRIVE: When you begin to spin, remove your foot from the gas pedal. Slowly steer in the direction you want the car to go. If you are still skidding out of control, counter-steer until your vehicle is pointing in the right direction. Never apply steady pressure to the brakes.
  
  
  
  

If you become stranded:

(Items in bold should already be packed in the vehicle as part of your emergency supplies. See below for a complete emergency supply list.)

• If your vehicle breaks down, pull as far off the road as possible and turn on the warning/flashing lights. Your greatest personal danger at this point is that of being hit by passing cars.
• Don't panic. Use common sense.
• Do not leave your car unless you know exactly where you are, how far it is to help, and are certain you will improve your situation.
• To attract attention light two flares and place one at each end of the car a safe distance away or hang a brightly colored cloth from your antenna.
• If you are sure the car's exhaust pipe is not blocked, run the engine and heater for about 10 minutes every hour or so depending upon the amount of gas in the tank.
• To protect yourself from frostbite and hypothermia, use the woolen items, blanket, newspapers, and large bags to keep warm.
• Keep at least one window open slightly. Heavy snow and ice can seal a car shut.
• Bottled water may freeze. Eat a hard candy to keep your mouth moist.

Vehicle Emergency Supply List:

1. Battery jumper cables
2. First aid kit
3. Shovel
4. Basic tool kit (pliers, screwdriver, adjustable wrench) and pocket knife
5. Sleeping bags or blankets
6. Extra winter clothing (caps, socks, mittens, and boots)
7. Bottled water & non-perishable food - nuts, candy, nutrition bars, etc.
8. Windshield scraper
9. Flashlight and transistor radio with extra batteries for each
10. Candle and matches
11. Bag of sand
12. Bright colored cloth
13. Wireless phone, if available

Credit fix

Credit fix

Home-buyer tax credit will boost sales, housing market will stabilize: NAR 

By Amy Hoak, MarketWatch

SAN DIEGO (MarketWatch) -- Home sales are expected to rise about 15% next year, as buyers take advantage of a home-buyer tax credit and housing prices stabilize, the National Association of Realtors' chief economist predicted on Friday at the group's annual conference in San Diego.

The industry group is forecasting 5.69 million existing home sales in 2010, up from an anticipated 5.01 million this year. About 549,000 new-home sales are projected for next year, up from an estimated 397,000 this year, he said.

"The fear factor will no longer be at play in 2010," said Lawrence Yun, NAR chief economist. Many consumers feared that home prices would continue to fall and decided to postpone their purchases until the values were finished declining, he said. But next year, those who remained on the sidelines will believe prices have hit bottom.

And they'll take action -- if they have a job, he said.

Yun said unemployment could remain about 10% during 2010, but it "will not deter those people with jobs from making home-purchase decisions."

Realtors are celebrating the extended and expanded home buyer tax credit at their annual conference. The industry group, along with others, lobbied for passage of the measure. Read more on the expanded credit.

With the credit, first-time buyers can qualify for up to $8,000; those who own a home may qualify for a credit of up to $6,500 for the purchase of a new principal residence. Realtors are optimistic that the "free money" being offered to home buyers will help generate sales during some of the softest months of the year: November, December and January, Yun said.

"By putting cash in the hands of financially healthy home buyers, the credit will continue to help draw down inventory and stabilize home prices to encourage a strong and sustainable housing recovery," said NAR President Charles McMillan in a news release.

To qualify for the credit, buyers have to have a binding contract on a property in place by April 30, and need to close on the sale by June 30. Yun said there is a strong sentiment in Washington that the credit won't be extended again. He also thinks that it might not be needed.

"By that time, the housing market will be back on track... and I believe that will be the situation as the tax credit comes to an end in the middle of next year," Yun said. By that time, he expects home values to be showing consistent -- and sustainable -- increases.

Barring any major unforeseen events impacting the economy, home prices are expected to rise between 3% and 5% next year -- although appreciation will vary widely between local markets, he said. See why some economists think housing could be in for a double-dip recession in 2010.

Yun is also taking into account the high level of foreclosures that will continue to pile up into next year. Yun expects foreclosures to peak in the first or second quarter, but said there is demand in the market to absorb the inventory quickly. Read more on the avalanche of mortgage modifications that need to be dealt with.

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Focus on first-timers

First-time buyers made up a record 47% share of home sales over the past year, up from 41% in 2008, according to NAR's Profile of Home Buyers and Sellers, scheduled to be released during the conference. In 2006, as home prices were near their peaks in many markets, first-time buyers made up 36% of sales.

The rise in people buying a first home is being attributed largely to the tax credit; Yun estimates that there were 2.3 million to 2.4 million first-time buyers this year.

First-time buyers also took advantage of lower home prices this year, as well as low mortgage rates. NAR is forecasting that the 30-year fixed-rate mortgage will average 5.3% in the fourth quarter, and will rise gradually to 5.8% by the end of next year.

Yun said that the jumbo mortgage market is showing signs of improving, which will help sales of more expensive homes; jumbo loans are those that exceed the conforming loan limit and thus are too large to be bought by Freddie Mac or Fannie Mae.

Amy Hoak is a MarketWatch reporter based in Chicago

Things to consider - Tax Credit Program

Following are key points that prospective home buyers should be aware of when considering a home purchase under the tax credit program.

• A tax credit of up to $8,000 is available for first-time home buyers purchasing on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• A tax credit of up to $6,500 is available for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The repeat home buyer tax credit applies to houses sold after November 6, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• Income limits of $125,000 for individuals and $225,000 for married couples filing jointly apply to all sales occurring after Nov. 6, 2009.
• The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for individual taxpayers and $150,000 for married couples filing jointly.
• Homes priced above $800,000 are not eligible for either the first-time home buyer tax credit or the repeat home buyer tax credit.
• Expanded tax credit benefits apply to members of the military, the foreign service and the intelligence community.
• Home purchases in 2010 may be claimed on an amended 2009 income tax return.
• Persons who are claimed as dependents by a taxpayer or who are under age 18 do not qualify for a tax credit.
• Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit. The IRS defines relatives as ancestors (parent, grandparent, etc.), lineal descendants (child, grandchildren, etc.) and spouses.
• Married couples are not eligible to claim the first-time home buyer tax credit if either spouse has previously owned a home. They may, however, qualify for the repeat home buyer tax credit.
• Neither the first-time home buyer tax credit nor the repeat home buyer tax credit have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• Taxpayers must submit a copy of the HUD-1 settlement statement and IRS Form 5405 to claim either the first-time home buyer tax credit or the repeat home buyer tax credit.

by the National Association of Home Builders

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Treasury Sets New Short Sale Guidelines

Treasury Sets New Short Sale Guidelines 

By Deborah Ball, 

RE/MAX Times Online Associate Editor

The U.S. Treasury Department's long-awaited guidelines to streamline Short Sales, announced Monday, will have a significant impact on families facing foreclosure, according to RE/MAX International Chairman and Co-Founder Dave Liniger.

The Home Affordable Foreclosure Alternatives Program (HAFA), part of the Home Affordable Modification Program (HAMP), provides financial incentives and simplifies Short Sales procedures by setting limits on the time it takes lenders to respond, freeing borrowers from debt and capping claims of subordinate lenders.

The Treasury's announcement comes on the heels of more than a year's work by RE/MAX leadership to persuade federal lawmakers to address the need for a simpler Short Sale process.

"While the plan doesn't include all of our suggestions, we feel it's a big step in the right direction," Liniger says. "These new policies will make Short Sales much more attractive to our clients and much easier for us to complete."

Tools are already being developed and collected to help you and your clients:
• Watch a Dave Liniger video about the guidelines.
• Read a Reuters news article about the Treasury plan.
• Watch and share a new consumer video, featuring Margaret Kelly, that is posted on remax.com and YouTube. Use this link to share the video: http://www.youtube.com/watch?v=fkuXvFBYXVU.
• Check out other older videos, such as "Short Sales: The Basics," and "RE/MAX Agents Help Homeowners Avoid Foreclosure with Short Sales," which can also help you introduce the concept to potential clients.
• Visit RE/MAX International's Facebook and Twitter pages to share your thoughts about the announcement. A social media Dave Liniger video clip (not the one here on Mainstreet) can be seen and easily shared through Facebook.
• Get Short Sale information from NAR's REALTOR.org site, including details on HAFA.
• Download a HAMP press release.
• Download a HAMP Supplemental Directive that spells out the details.

With unemployment over 10 percent and millions of adjustable-rate mortgages primed to reset next year, a "tsunami" of distressed properties could be on the horizon, Liniger says. The new guidelines, as well as a growing acceptance by lenders and second-lien holders, give homeowners a better chance of closing a Short Sale rather than losing their house to foreclosure.

Here are some of the program's key guidelines (download the program's full details in the HAMP Supplemental Directive):

• Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
• The seller will be released from all liability for repayment of the mortgage debt.
• Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
• The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
• The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
• The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission. 
• The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.

RE/MAX leaders have been advocating Short Sale improvements for quite some time. In September, Liniger met with Housing and Urban Development Secretary Shaun Donovan and other U.S. housing officials to discuss the need for prompt action. A meeting with Sen. Harry Reid (D-Nev.) also moved the process along.

For their part, RE/MAX Associates have embraced training in Short Sales and REOs. The network accounts for nearly 60 percent Certified Distressed Property Expert designees. That education will continue to play a vital role in order for Associates to successfully handle Short Sale transactions and establish themselves as the leading experts in their markets, Liniger says.

"Associates should become familiar with the new guidelines and put the details into their presentations," Liniger said.

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Editor's note: The official effective date is April 5, 2010, but participating mortgage servicers can begin operating under terms of the new program prior to that date if they are ready to meet all reporting requirements. The guidelines released in November 2009 do not specifically apply to loans owned or backed by Fannie Mae or Freddie Mac (representing about half of all U.S. mortgage debt). But those organizations are working with the Treasury to finalize applicable servicing guides, which are expected soon. 

© 2009 RE/MAX International, Inc. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

About Buying HUD Homes

What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

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Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

If you are an evacuee displaced by Hurricane Katrina, Rita or Wilma, HUD could sell a HUD home at a discount to you!

How are HUD Homes sold?
All properties available for purchase by the public are offered for sale at Internet listing sites maintained by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.

Are there any special programs?
Properties in designated areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments. Read more about these Good Neighbor Initiatives.

Should I get a home inspection?
We encourage you to get an inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.

What about financing?
Although HUD does not offer financing directly, some of our homes qualify for FHA-insured loans. Shop around for a lender to find the best loan terms. Find out how an FHA loan can help you.

21 Mind-Blowing EscapesThe Best Nature Has to Offer

From www.travelchannel.com Utah ranks #8, right between Italy and Morocco!

21 Mind-Blowing EscapesThe Best Nature Has to Offer

by Erica Walsh

For those of you who sometimes feel overwhelmed about where to go on your next vacation, this list is key. From Arizona to Zambia, all the places on this list offer eye-opening natural wonders and once-in-a-lifetime experiences sure to blow your mind.

21. Blue Lagoon, Iceland
Kicking off the countdown is Iceland's Blue Lagoon, home to the world's largest geothermal pool. The pool's saltwater gets completely renewed every 40 hours and never drops bellow 100 degrees. Visitors to the pool swear by its positive effects on the skin and the soul. Guests are also welcome to indulge in the spa's many massages and treatments offered indoors and in the lagoon's healing water.

20. Four Seasons Tented Camp, Thailand
The Golden Triangle is where Thailand, Burma and Laos meet and where the Four Seasons Tented Camp offers the ultimate jungle luxury. Fifteen elevated, freestanding accommodations allow for privacy and spectacular views of the Ruak River, Burma, the Laotian mountains and lush jungle. The resort specializes in 3- or 4-night adventures, which include an elephant trek, hiking and a river excursion.

19. Isla de Vieques, Puerto Rico
The small island of Isla de Vieques was primarily under the control of the United States Navy until 2003. Therefore it lacks crowds, tall buildings, traffic and commercialized oceanfront property. The beaches here are pristine, the green flora lush and it's located only 6 miles from San Juan. The island is home to Puerto Mosquito, which despite its name is one of the most romantic places in the world. The bright bioluminescent bay will have you feeling as if you're floating among the stars.

18. The Peninsula Hotel, Hong Kong
The Peninsula Hotel in Hong Kong offers an elite experience that makes all guests feel like royalty. The hotel opened in 1928 and is the city's only historic 5-star luxury hotel. Its spectacular vistas of the Victoria Harbour in combination with top-of-the-line amenities make this the only Hong Kong hotel for the discerning traveler.

17. Bernese Oberland, Switzerland
If cityscapes and neon lights remind you a little too much of your 9 to 5, then escape to one of the most beautiful regions of Switzerland. The Bernese Oberland captures nature at its finest: snow-capped mountain peaks, fresh air and lush rolling greens. The quaint town of Interlaken lies between Lake Thun and Lake Brienz and is only a short train ride to the beautiful ski town, Grindelwald. This magical Swiss region truly offers the best of summer and winter and is a must for outdoor enthusiasts.

16. Secret Beach, Kauai
Nestled at the base of a sheer cliff just north of Kilaua, the Secret Beach truly is one of the island's best-kept secrets. Sunbathers will have to hike down a rocky, near-vertical trail to find the magnificent stretch of sand and sea. Your effort will immediately be rewarded as cares and worries melt away in this secret Hawaiian paradise.

15. Sequoia National Park, California
Number 15 on the countdown takes us back to the continental United States and straight to a national treasure. Sequoia National Park in California is home to some of the oldest trees on the planet. Three-thousand-year-old giant Sequoias cover the park's 400,000 acres. Activities within the park vary according to season, but its majestic and awe-inspiring beauty is a constant.

14. Milford Sound, New Zealand
In New Zealand's Fiordland region, visitors are awe-struck by the scenery of Milford Sound. Tumbling waterfalls, ancient rain forests, sparkling lakes and granite peaks capture the heart and the imagination. Travelers can experience the region via kayak, on foot and by air.

13. Cinque Terre, Italy
Just south of Genoa lies Cinque Terre, a national park and protected UNESCO territory. Over time, farmers in the Cinque Terre region transformed the area's steep natural slopes into fertile terraces for the cultivation of wine. The dry stone walls guide you through a varied network of paths with beautiful views of the Mediterranean. Those who like to hike should find the Cliffside trail, which passes through 5 coastal villages.

12. Wakaya Club and Spa, Fiji
The Wakaya Club is located on Wakaya Island in Fiji, a private 2,200-acre retreat belonging to Fiji's 333 islands. Wakaya Island features serene lagoons, majestic cliffs, beautiful beaches and is encircled by a coral reef. The resort includes 10 freestanding waterfront cottage suites where guests experience unparalleled pampering. From gourmet cuisine to luxurious spa treatments, the resort provides everything you could possibly desire in one of the world's most idyllic settings.

11. Ski Dubai, United Arab Emirates
Dubai is the fastest-growing city in the world and quickly becoming a place where anything is possible; proof of this is the creation of a man-made indoor ski slope. Ski Dubai has 5 runs varying in difficulty, a free-style zone and a family-friendly Snow Park. Don't worry about packing your skis or parkas -- both are available for rent at the one-of-a-kind desert ski mountain.

10. Volcanoes National Park, Hawaii
Two of the world's most active volcanoes sit inside Hawaii's Volcanoes National Park. There are many ways to experience the power of these natural wonders -- scenic drives, hikes and ranger-led tours being the most popular.

9. Marrakech, Morocco
In Morocco's historical Marrakech is the notorious Jamaa El Fna marketplace. Here, storytellers, shopkeepers and snake charmers vie for your attention while you enjoy traditional foods like escargot and couscous. You truly will feel as though you've entered another world, tantalizing to the senses.

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8. Monument Valley, Utah
The continental United States are back on the countdown at number 8. Monument Valley in Utah has been the setting for more Western movies than any other site in the US. Its iconic sandstone formations and the Four Corners Monument are unforgettable and absolutely breathtaking in person.

7. Venice, Italy
The city of Venice conjures images of stunning architecture, artistic masterpieces and incomparable wine and cuisine. Get lost in the St. Mark's Basilica and St. Mark's Square; experience the sites and sounds of the Venice Carnival; and walk across the Rialto Bridge.

6. Singita Lebombo, South Africa
At the Singita Lebombo Lodge, travelers experience the perfect combination of luxury accommodation and safari adventure. The resorts 15 suites all include indoor and outdoor showers and private terraces where you can sleep under the stars. During the day, explore the African wilds accompanied by an experienced guide and tracker.

5. Jellyfish Lake, Palau
Palau truly is one of the world's most beautiful tropical paradises. Located 500 miles from the Philippines, the island is famous for Jellyfish Lake. Here, a special species of jellyfish has been trapped in the lake and, over time, they've lost their ability to sting. A unique and unforgettable swimming and diving adventure, it earned the number 5 spot on our countdown.

4. Santorini, Greece
Santorini, Greece, is located in the Cyclades of the Aegean Sea and has one of the most beautiful landscapes in the world. The villages are built on cliffs and overlook a submerged volcano. Those who visit Santorini flock to Oia, a town offering stunning views of the sunset.

3. Grand Canyon, Arizona
Carved by the mighty Colorado River, the Grand Canyon is an unbelievable chasm that cuts 5,000 feet into the earth's crust. The canyon is 277 miles long, up to 18 miles wide and over one mile deep. Its vista is mesmerizing and awe-inspiring.

2. Zambezi River Rafting, Zambia
From a mighty river in America to another in Zambia, only the truly brave of heart risk whitewater-rafting on the Zambezi River. The river is classified as a high-volume, pool-drop river and floods between February and the end of June. At times, the volume is 4 times that of the Colorado River, so make sure you're prepared before running the Zambezi.

1. Angkor Wat, Cambodia
Angkor Wat is one of the most important archaeological sites in Southeast Asia. Another UNESCO-protected location, it contains the remains of the different capitals of the Khmer Empire, including the Temple of Angkor Wat and the Bayon Temple. Marvel at this jaw-dropping and eye-opening historical preservation.

Ten Questions on the Volatile Housing Market

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Ten Questions on the Volatile Housing Market


Lower Prices Have Spurred Home Sales, but Looming Foreclosures and High Unemployment Are Clouding the Outlook

By JAMES R. HAGERTY (The Wall Street Journal)


The U.S. housing market has been in a slump for the past four years. When will it ever end?

In recent years, real estate has proven as jittery and unreliable as any other market. The average U.S. home price nearly doubled between January 2000 and April 2006, according to the First American LoanPerformance index. Since then, the average has fallen about 30%. The drop has been 53% in the Las Vegas metropolitan area and 39% in Miami, where about a quarter of all households with mortgages are behind on their payments or in foreclosure. The value of your home might be determined more by whether the neighbors keep their jobs than whether the house has ample light and closet space.

Here is a guide to navigating a fractured and volatile market:

1. Is the housing market getting better?
It has shown some signs of healing this year, but the much-touted recovery is tentative and fragile.
Home sales have increased from the severely depressed levels of 2008. The inventory of unsold homes listed for sale also is down. Bidding wars are breaking out for foreclosed homes in the sorts of neighborhoods (near jobs and decent schools) that attract both first-time buyers and investors seeking rental properties.
But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.
While the supply of middle-class homes on the market has declined somewhat, it remains ample in most places. And there is a huge glut of high-end houses for sale in many areas. That means prices of high-end homes might still have a long way to fall.

2. When will housing bottom out?
There probably won't be any clear turning point. Monthly indicators, such as home sales and prices, tend to bounce erratically from month to month, making it hard to discern the underlying trend. And the housing bust will end at different times in different places. House prices already might have bottomed out in the coveted Virginia suburbs with short commutes into Washington, D.C., for instance. But it probably will be years before all of the unsold condos find buyers in parts of Florida.

Generalizations about states or metropolitan areas don't say much about what is happening in your neighborhood. In Summit, N.J., known for good schools and an easy, 45-minute train commute to Manhattan, the median home price in September was up 1.2% from a year earlier, according to Otteau Valuation Group, an appraisal company. In Atlantic City, N.J., which suffers from too much speculative building of condominiums and weak demand for vacation homes, the median price is down about 12% from a year ago.

3. What signals should I watch to determine whether my local market is improving?
One way to get a sense of supply is to ask a good local real estate agent for stats on how many homes are listed for sale in your town and how many months it would take at the current sales rate to absorb that supply. Anything over about six months generally is considered high, meaning that sellers might have to cut prices. Another way to get a sense of a neighborhood's health is to count the number of for-sale signs and vacant houses. If there are more than a couple vacant homes in a block, that might be a bad sign, particularly if no one is taking care of them.

The supply of homes listed for sale has fallen very sharply in some areas. But the supply is likely to balloon again in many areas with a renewed surge in foreclosures. Many local newspapers provide information on foreclosure filings.

Demand depends heavily on the job market. The U.S. Bureau of Labor Statistics provides unemployment rates by metropolitan area. In September, they ranged from 2.9% in Bismarck, N.D., to 30% in El Centro, Calif. State and local agencies provide job-market data, too. Celia Chen, a housing economist at Moody's Economy.com, says help-wanted signs can be a useful local indicator; if you start seeing more of them around your neighborhood, that is a sign that business in your area could be starting to recover.

4. How can I figure out the value of my home?
You never know for sure what a home will fetch until you put it on the market, and then it is partly a matter of luck. Will the eager buyer who shares your taste in home style and neighborhood show up on day one or day 200?

Some Web sites -- including Zillow.com, HomeGain.com and Cyberhomes.com -- provide estimates of individual home values. These estimates are largely based on recent sales of nearby homes, and in some cases they are wildly off the mark. But they often provide a ballpark idea of a home's value.

You might come closer to the real value by talking to a local agent and looking at recent prices for homes that you know are very similar to yours. If you want to be more scientific and don't mind paying a few hundred dollars, hire a professional appraiser.

5. Does it matter whether I'm "under water"?
At least you have plenty of company. About 20% of owners of single-family homes with mortgages owe more than the current estimated value of their homes, according to Zillow.com.
If you can afford your monthly payment and don't need to move soon, that might not be a big problem. But it is hard, and sometimes impossible, to refinance a mortgage if you are under water, and you will take a bath if you have to sell the home now. Some people who can afford to make their monthly mortgage payments are deciding it doesn't make sense to do so because they don't expect their home values ever to recover to past peaks, and they could rent similar houses for much lower monthly costs.

6. If I lose my home to foreclosure, how long will it take to repair my credit record?
It probably will be three to five years before you can qualify for a home mortgage insured by the government, depending on your circumstances, and that assumes you have re-established a record for paying your bills on time. The foreclosure will remain a blot on your credit record for seven years, likely raising your interest costs even if you do get another loan. If you pay bills on time, keep your credit-card balances low and don't apply for too many cards, you can make a "slow, gradual improvement" in your credit score, says Tom Quinn, a vice president at Fair Isaac Corp., which provides tools for analyzing credit records.

7. If I'm renting, is now a good time to buy a house?
It may well be. Prices in most areas are well below their peaks, even if they haven't hit bottom. Don't kid yourself that you can time the bottom of the market perfectly. But don't feel any pressure to buy in a hurry, because the supply of housing is likely to remain ample for years in many areas.
Generally, it doesn't make sense to buy unless you expect to remain in the house for at least four or five years, because the transaction costs -- including commissions for real estate agents and mortgage fees -- are heavy.

But now is clearly a good time to rent. Many landlords need tenants badly. The national apartment-vacancy rate in the third quarter was 7.8%, the highest in 23 years, according to Reis Inc., a New York research firm. So landlords are cutting rents and offering such sweeteners as free flat-screen televisions or several months of free rent to retain or attract tenants. Some owners of condos will "cut their throats to get some kind of rental income to cover part of their expenses," says Jack McCabe, a real estate consultant in Deerfield Beach, Fla.

8. Can I get a tax credit if I buy a home now?
Under an expanded and extended program approved by Congress earlier this month, tax credits are available to many people who buy or sign a contract to buy a principal residence by April 30 and complete the purchase by June 30. The tax credit is up to $8,000 for first-time home buyers and $6,500 for people who already have owned a home for at least five consecutive years during the previous eight years. The credit is available for individual taxpayers with annual incomes of up to $145,000 or joint filers with incomes up to $245,000.

9. Can I get a mortgage on attractive terms?
Only if you have a good credit record, a moderate amount of debt in relation to your income and the ability to fully document your income. That last requirement is fairly easy for people who work for a salary and have had the same employer for more than two years, but it can be tough for self-employed people with incomes that vary substantially from year to year.

A borrower with a strong credit score of 740 or higher (on the scale of 300 to 850) and the ability to make a down payment of at least 20% could get an interest rate of about 5% with no origination fees on a 30-year fixed-rate mortgage, says Lou Barnes, a mortgage banker in Boulder, Colo. But if your credit score is 680, the rate jumps to about 5.5%.

People who can't make a down payment of at least 20% generally are being funneled into loans insured by the Federal Housing Administration. That means paying extra fees for the FHA insurance.

Borrowing costs are steeper at the high end of the housing market. For so-called jumbo loans -- those above $729,750 in areas with the highest housing costs or $417,000 in places with the lowest costs -- interest rates on 30-year fixed-rate mortgages last week averaged 5.95%, according to HSH Associates, a financial publisher.

10. Should I invest in foreclosed homes?
Probably not. A lot of investors chase these properties, and only the most experienced know how to deal with all of the pitfalls. Homes auctioned at trustee or sheriff sales are sold on an as-is basis, and there is no provision for an inspection before you take ownership. If after buying you find out that termites have been treating the floor joists as an all-you-can-eat buffet, that is your problem. You must pay for the full price within a day or two, so you need a lot of cash or access to special short-term loans for investors that come with interest rates of around 18%. This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market.

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***Keep in mind that a home that is short sold is NOT the same as a foreclosure***
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.

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Some Things to Remember Before You Move…

Some Things to Remember Before You Move…

 Send your forwarding address to the local post office and send change of address card to:- Insurance companies - Magazines - Merchants - Clubs - Friends - Charge accounts- Credit cards - Book/CD clubs - Catalogs - Veterans Administration
Keep file of vital papers and reminders
Get estimates from moving companies, select a moving company, confirm date and decide who will pack.Paid packers typically come the day before moving day.
Start sorting. Decide what to move, what to sell, give away, discard. Take cuttings or give away extra house-plants.
Inventory possessions. List dents and scratches and, if possible, list value and year of purchase. Photo or video records are ideal.
Transfer insurance:- Life - Automobile - Hospitalization - Household goods, personal possessions
Arrange sufficient cash or traveler’s checks to cover cost of moving expenses and services. Transfer companies usually require certified funds or cash.
Have your bank recommend an affiliate in your new city and transfer bank accounts and empty safe deposit box.
Disconnect and obtain any deposits or letters of credit:- Electric - Water - Gas - Phone - Cable
Stop service on the following:- Newspaper - Garbage collection - Bakery - Milk - Lawn - Laundry, diapers - Other
Notify principal of your children’s school about your intended move.- Request a letter from him/her covering the status of your children in school.
Notify your church pastor that you are leaving.
Obtain birth and baptism records of your children.
Obtain all medical records of shots, dental records and eyeglass prescriptions.- Have your drug prescriptions filled.
Check with your attorney about will revisions, if moving out of state.
Have appliances serviced for the trip:- Service power mowers, boats, etc., drain all gas and oil- Automobiles - Refrigerator
Pick up personal items:- Shoes being repaired - Off-season stored clothing - Dry cleaning and laundry - Film
Return all borrowed items, library books. Collect anything borrowed from you.
Pack cleaning supplies, hammer, nails, screwdriver, pliers, masking tape, tape measure, flashlight and batteries, cloths, scissors, light bulbs, aspirin, soap, toilet paper and first aid supplies, in a separate carton, to take with you.
Keep basics handy and in well-marked boxes:- Comfortable clothes - Phones - Cosmetics/toiletries - Alarm clocks - Iron - Cleaning supplies - Extension cords - Toolbox and flashlight - Linens and towels
Save the phone book from your former city residence.
Carry jewelry and documents yourself.
Verify insurance coverage, packing and unpacking labor, arrival day, various shipping papers, method and time of expected payment.
Let a close friend or relative know the route and schedule you will travel, including overnight stops. Use him/her as message headquarters.
Leave the keys for your old property with your Sales Associate or Title Co.
Collect children’s games and activities for the trip.
Plan meals and snacks, to minimize shopping. Have “quick-fix” foods ready or plan to eat out/carry in.