Legal & Tax Related – Gallaudet Properties

March 31, 2009

C.A.R. Launches New Mortgage Protection Program

The California Association of Realtors (C.A.R.) is launching a new mortgage protection program for new home buyers in an attempt to make home purchasing even more attractive. There are so many incredible incentives for buying real estate right now. Not only do we have low interest rates AND low home prices, but if you’re a first time home buyer, there is an $8,000 tax credit along with this new program to help hedge against job loss. Momentum IS picking up — the deals are just too good to be true out there right now. We have many motivated sellers who will work with buyers in new and creative ways like seller financing at LOW IO rates, HOA dues paid by sellers, mortgage buy down programs etc! Call us if you’d like to learn more.

Here is the detail of the new mortgage plan from the C.A.R. website:

Dear C.A.R. Member,

I am very pleased to announce that this Thursday, April 2, C.A.R. will
launch a new program designed to provide peace of mind to first-time
buyers who are hesitant to enter the housing market due to concerns
about potential job loss, and subsequently being unable to meet their
monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection
Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs
due to layoffs may be eligible to receive up to $1,500 per month for up
to six months to help make their mortgage payments. A qualified
co-buyer also can participate in the program, for a reduced monthly
benefit of $750 per month for up to six months in the event of a job
loss. Program benefits also include coverage for accidental disability
and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is
dedicating $1 million to the program this year, and estimates that as
many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application
for the H.A.F. Mortgage Protection Program from their REALTOR®. For
applications and other information on this exciting new program, go to www.car.org/aboutus/hafmainpage/ or contact Monica Rodriguez at (213) 739-8380 or monicar@car.org.

The Mortgage Protection Program
is a proactive approach by C.A.R. to address consumers’ concerns about
the real estate market and their ability to make their mortgage
payments should they loose their jobs. I encourage you to take full
advantage of this new program by sharing information about the
C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no
cost to either you or your clients to participate.

Sincerely,

James Liptak
2009 C.A.R. President