Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers

Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part-time. These provisions are part of the recently enacted Hiring Incentives to Restore Employment (HIRE) Act.

Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.

For more information on HIRE, please visit www.irs.gov/businesses/small/article/0,,id=220745,00.html.

 

 

Tax Credit Still in Effect for Overseas Personnel

Although the home buyer tax credit has expired for buyers signing contracts after April 30, the credit remains in effect an additional year for military personnel and foreign service employees deployed overseas for 90 days or more between January 1, 2009, and April 30, 2010. They can still claim the credit if they sign a contract on or before April 30, 2011, and close on or before June 30, 2011. The extended benefit could be helpful to members of the military ending tours of duty in Iraq and Afghanistan, among other places, as well as sailors returning from naval deployments across the globe. For more information, visit www.realtor.org.

 

 

Home Affordable Refinance Program (HARP) extended to June 30, 2011

On March 1, 2010, the Federal Housing Finance Agency (FHFA) announced the extension of the Home Affordable Refinance Program (HARP). FHFA is the regulator and conservator of Fannie Mae and Freddie Mac. HARP is a component of the Obama Administration's Making Home Affordable Program. Borrowers with loans guaranteed or owned by Fannie or Freddie with loan-to-value ratios between 80 percent and 125 percent may be eligible to refinance their mortgages under HARP. In 2009, there were nearly 200,000 refinancings under HARP, far short of the original goal of helping up to 5 million homeowners. For more information, visit the Making Home Affordable Program website or read the FHFA announcement.

 

NAR Consumer Website HouseLogic Launches

On February 16, 2010, the NATIONAL ASSOCIATION OF REALTORS^® (NAR) launched HouseLogic, a new, comprehensive consumer website about all aspects of homeownership. HouseLogic helps homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes.

The free website helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to's; and information about taxes, home finances and insurance. To learn more, read the NAR press release or visit www.HouseLogic.com.

 

DoD Homeowners Assistance Program for Active Military Released

The Department of Defense and Army Corps of Engineers published the final rules for the Homeowners Assistance Program (HAP), as it applies to Members of the Armed Forces permanently reassigned during the mortgage crisis. The American Recovery and Reinvestment Act (ARRA), passed in February, provided new relief for active duty military personnel who have been permanently relocated, and face or have faced a loss on the sale of their home. The program applies to those who purchased their property before July 1, 2006, and whose reassignment was ordered at least 50 miles away, between February 1, 2006 and September 20, 2012. The property has to have served as the primary residence, and the recipient must not have received HAP aid previously. For full information and an application, visit the DoD HAP website.

 

 

Craigslist.org Listing Scams

NJAR^® has been sporadically contacted by members regarding the improper use of Craigslist (www.craigslist.org). Some users are posting false advertisements featuring REALTOR^® rental and sale listings as a scam targeting consumers, urging them to send funds to a party that is not in any way associated with the rental listing. NJAR^® Executive Vice President Jarrod C. Grasso, RCE, sent a letter to New Jersey Attorney General Anne Milgram to urge a resolution to the matter.

If you are the listing agent on a property that has fallen victim to such a posting, it is strongly recommended that you contact the New Jersey Real Estate Commission (REC) as well as the administrators of Craigslist. You may also report the problem to the Internet Crime Complaint Center at www.ic3.gov.

 

NJAR^® Encourages Consumers to Explore Short Sales as an Alternative to Foreclosure

There are key advantages to pursuing a short sale over a foreclosure. In today's unsteady economy, many homeowners experiencing financial difficulty have turned to a short sale as a means of avoiding a foreclosure. In many cases, sellers who cannot keep up with their mortgage payments strike a deal with their lender to sell the home and payoff less than the total amount due on the loan. In some cases, the lender forgives the outstanding debt.

Check out NJAR®'s new Short Sale and Foreclosure Resources webpage to find out more and to learn about government programs aimed to assist consumers facing these difficult situations.