As part of its plan to stimulate the U.S. housing market, 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 Apr. 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.

Following is more information about how the Extended Home Buyer Tax Credit:

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.

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: the price of the home and 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 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.

Source: http://www.realtor.org

Several reports have been received by local Iowa law enforcement officials and staff at the Iowa Association of REALTORS® regarding fake property listings on the site Craigslist.com.

These listings often appear with actual property photos and valid property information; however, the advertised purchase or rental price of the property is usually incorrect and often the falsifield listing indicates that a propective purchaser or lessee should send a deposit check to a person in a foreign country.

The Iowa Property Owners Alliance urges consumers to use caution during online property transactions.

Here are several articles related to this issue:

http://www.nj.com/independentpress/index.ssf/2009/10/craigslist_scam_lists_fraudule.html

http://www.kiiitv.com/news/local/63609477.html

For local real estate information, please see our Resources page.

DES MOINES, Iowa - August 21, 2009 - Residents in Iowa looking to purchase a new home may be surprised to learn that the only no-down-payment programs still available are offered through the United States Department of Agriculture (USDA).

"Last year USDA Rural Development provided Iowans with $128 million in guaranteed and direct loans to help 1,600 families living in rural communities become homeowners, many of whom now own their first home," said Bill Menner, USDA Rural Development State Director in Iowa.

USDA Rural Development has up to $300 million available in two low-interest, no-down-payment loan programs to help eligible families living in rural communities and areas purchase new homes. Loans and some grants are also available to help families make needed repairs to their homes as well.

Eligible homes must be located in a community of 20,000 persons or less. The home can be existing or new construction. Existing homes must be structurally sound. Also, the property cannot have any income-producing outbuildings.

In most cases a family of four with an adjusted annual income of up to $73,600 may qualify for the agency's guaranteed home loan program. If that same family of four's adjusted annual income is less than $50,800 they may also qualify for a direct loan from the agency. These income limits increase in communities located near metro areas.

USDA Rural Development's guarantee loan program is administered by a local lender who takes the application, processes it and determines the acceptability of the home to be financed. Under the direct loan program an applicant may be eligible for payment assistance, which would subsidize the interest portion of the house payment down to as low as 1 percent, lowering the overall monthly payment.

"USDA Rural Development expects to provide as many as 3,000 Iowa families with mortgage loans this year thanks to additional funding through the American Recovery and Reinvestment and special disaster assistance as a result of last year's flooding and extreme storms throughout Iowa," Menner said. "We have plenty of funds available this year, so please give us a call today to learn more."

USDA Rural Development is an equal opportunity lender with a variety of direct and guaranteed rural credit programs involving single and multi-family housing, community facilities, water and sewer development and business and industry programs.

Along with home mortgage loans, special funds are available from USDA Rural Development to assist with improvements to community facility and infrastructure projects such health clinics, community centers, public safety buildings and water and wastewater systems, as well as businesses and economic organizations looking to create jobs in rural communities.

Contact USDA Rural Development
Further information on programs available through USDA Rural Development is available by calling (515) 284-4663 or by visiting the agency's web site at www.rurdev.usda.gov/ia.

USDA Rural Development has 11 offices across the state to serve the 1.9 million Iowans living in rural communities. Office locations include a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.

by Lee Duin, Director - Polk County Treasurer

What is a tax sale?

A tax sale is a requirement of Iowa law in which delinquent property taxes on parcels of land or mobile/manufactured homes are sold to investors attending the annual sale. The sale, held the third Monday of June, is required by Iowa law so that all taxing authorities, i.e., cities, schools, counties, etc., receive the full amount of property taxes levied for their operations. The property owner has a limited time period to redeem the tax sale by payment to the county treasurer of the total amount of taxes sold at sale and interest of 2% per month from the date of sale to the date of redemption. If redemption does not occur during the legal time period, the county treasurer is required by Iowa law to issue a tax sale deed transferring ownership of the property to the investor that paid the taxes at the time of the tax sale.

What if I wasn’t notified that taxes were due?

Iowa law states that failure to receive a tax statement does not waive the interest that accrues on delinquent taxes. It is the property owner’s responsibility under Iowa law to determine their property tax liability and make sure they are timely paid.

The treasurer’s office collects taxes based upon a fiscal year beginning July 1st and ending June 30th. The total amount of property tax due is divided into two installments; the first installment is due by September 30th and the second installment is due by the following March 31st. The treasurer’s office mails a delinquent notice on February 1st to properties with delinquent taxes. On May 1st, after the March property tax deadline, they mail another delinquent notice for properties with delinquent taxes. The May 1st delinquent notice includes a statement that taxes on the parcel will be advertised and offered at the annual tax sale if the delinquent taxes are not paid. At the same time the May 1st delinquent notices are mailed, a four-dollar delinquent notice preparation fee is added to the delinquent tax amount. If delinquent taxes are not paid by the end of May, the delinquent tax amount, along with other property information such as owner name, address, and legal description, are advertised in a newspaper of general circulation on or about the first week in June.

What happens at tax sale?

On the third Monday in June the treasurer offers and sells delinquent taxes against properties in the county to tax sale investors. The county treasurer must sell the delinquent taxes in an open competitive bidding process. During the tax sale, each item is offered for sale to the investors, who may bid the percentage of undivided interest downward from 99% to 1%. The bid-down percentage will give the winning investor an undivided interest in the property should the county ever issue a treasurer’s tax sale deed.

The investor pays to the treasurer the total amount of delinquent tax, interest, fees and costs due against the property. The treasurer then issues a document called a ‘tax sale certificate of purchase’ to the investor for the amount of his/her ‘investment’ and places a ‘tax sale lien’ against the parcel. The county treasurer sends a notice by regular mail to the property owner(s) notifying them that delinquent taxes against their property were sold at tax sale.
The tax sale certificate of purchase issued to the investor does not convey property ownership. The property owner retains ownership of the property and may still ‘redeem’ the tax sale during the statutory redemption period. To ‘redeem’ the tax sale, the property owner must pay to the treasurer the amount of delinquent tax purchased by the investor, plus accrued interest and fees, within the payment period provided by law. At the time of redemption, the party redeeming must provide an affidavit (provided by the county treasurer) indicating their right to redeem the tax sale.

After the tax sale, investors may pay subsequent taxes that become delinquent on properties for which they own tax sale certificates. The treasurer’s office will not accept payments for subsequent delinquent taxes from investors until fourteen days after a tax installment becomes delinquent. Subsequent delinquent taxes paid by the tax sale investor significantly increase the dollar amount necessary to redeem the tax sale.

A tax sale must be paid (redeemed) in full by an individual who has an interest in the property. Partial payments for redemptions are not accepted by Iowa law. The treasurer collects the redemption or payment from the owner or other interested party, and then reimburses the investor for his/her original investment plus accrued interest. The amount sold at tax sale accrues interest at the rate of 2% per month from the date of the sale until the tax sale is paid in full. Any portion of a month is considered a full month. In addition, subsequent tax payments accrue interest at the rate of 2% per month, beginning with the month the subsequent taxes are paid by the investor until the tax sale is paid in full.

If the tax sale remains unpaid after the statutory payment period, the investor may begin the process of obtaining a tax sale deed to the property. The investor must first serve notice by regular and certified mail to those individuals or institutions with an interest of record in the property. The notice communicates to those served that they have ninety days to redeem the tax sale before a tax sale deed will be issued. After the tax sale, the investor files an affidavit with the treasurer’s office stating service has been completed. Property owners then have ninety days to redeem (pay in full) the tax sale to avoid losing their property. However, if the investor fails to file the affidavit within three years from the date the tax sale certificate was issued, the county treasurer cancels the tax sale lien.

If the tax sale is not paid in full (redeemed) during the final ninety-day payment period, the investor may request a tax sale deed to the property. Redemption funds must be in the physical possession of the county treasurer on or before the ninetieth day. A tax sale deed transfers ownership of the property, including all the right, title, interest, and estate of the former owner, to the tax sale investor. The investor is required to request the tax sale deed from the treasurer’s office within ninety calendar days after the final ninety-day payment period expires. The treasurer cancels the tax sale lien if the investor fails to request the tax sale deed during this time period.

Where can I get more information?

We strongly recommend you contact your county treasurer who will provide information about the process and explain your rights. You may receive communications from the tax sale certificate holder (the party that paid the delinquent taxes at the tax sale) at various times during the process. We also recommend you contact your county treasurer if you receive any communication from the tax sale certificate holder. The county treasurer will explain the process.

Can I really lose ownership of my property?

Yes, but only if you fail to make payment to the county treasurer within the statutory time period. If a tax sale deed is issued the new deed holder acquires the property free and clear of any recorded liens, i.e., mortgages, judgments, etc.

Need Help?

If you have any questions regarding tax sales contact your county treasurer. If necessary, the treasurer may urge you to seek legal help but in most instances the county treasurer will be able to respond to your questions. Use www.iowataxandtags.gov site to locate your county treasurer.