$6500 REPEAT HOMEBUYER TAX CREDIT...Maybe we need to have a petition for this too?

[montana59451]

Senators OK homebuyer tax credit extension - Real estate- msnbc.com

Not only is the first time homebuyer $8000 tax credit extended but they have now ADDED a $6500 tax credit for REPEAT homebuyers.

Now this is really going to stimulate the economy.....foreclose on our homes and then re-sell them with tax credits attached so we can start this vicious cycle all over again. And WE the taxpayers have to pay for this!

How about all of us taxpayers who face losing their homes receiving $14,000 government credits given to our lenders to pull our homes out of foreclosure? Now that might make some sense. We are going to pay for it anyway.

[aubie37]

This is really good news overall. Houses have to move and to offer a repeat homebuyer credit to eligible borrowers is a tremendous boost.

[montana59451]

Hey Aubie

Read the story attached to this link....houses may have to move, but NOT at the expense of those still fighting to save their homes. You got your loan mod Congratulations! You are one of the few. I personally don't see how taking from one to give to another is going to help anyone. You can still get an FHA loan with only 3.5% down. Read the story and think about it, they are just going to put people into unaffordable mortgages again. The economy will not recover for quite some time. The government can twist the numbers all they want to come up with an answer that makes them feel they look good to Americans...the reality is...they are extending unemployment benefits for another 20 weeks...more people are still losing jobs...Costco is now going to accept food stamps...and NO ONE is forcing the lenders, investors and servicers to adhere to the MHA guidelines...our government is out of control and WE THE PEOPLE have lost control of our government.

I can see your point, but I wholeheartedly disagree with it. Just my redneck opinion.

Your Government - back to business as usual

[aubie37]

Originally Posted by montana59451

Hey Aubie

Read the story attached to this link....houses may have to move, but NOT at the expense of those still fighting to save their homes. You got your loan mod Congratulations! You are one of the few. I personally don't see how taking from one to give to another is going to help anyone. You can still get an FHA loan with only 3.5% down. Read the story and think about it, they are just going to put people into unaffordable mortgages again. The economy will not recover for quite some time. The government can twist the numbers all they want to come up with an answer that makes them feel they look good to Americans...the reality is...they are extending unemployment benefits for another 20 weeks...more people are still losing jobs...Costco is now going to accept food stamps...and NO ONE is forcing the lenders, investors and servicers to adhere to the MHA guidelines...our government is out of control and WE THE PEOPLE have lost control of our government.

I can see your point, but I wholeheartedly disagree with it. Just my redneck opinion.

Your Government - back to business as usual

Montana,

I am not advocating anyone being in a home they cannot afford. Negative amortization, interest only loans, and all of the crazy stuff that was utilized to get people "in" worked then and helped to cause most of the chaos we are in. I work in the mortgage industry and have been for over five years exclusively. Underwriting loans today is tougher than many would like to suffer through. The layers of an onion are peeled away to make sure that all questions are answered, even if it makes entirely no sense, before a loan gets approved. Conservative is how underwriting rides today. This is a good thing.

Promoting good for us all is what I am for. My brother is an early retiree forced out of the auto industry. I have been downsized and do not expect lifetime employment. However, the housing industry and manufacturing helps to drive our economy.

The struggle for saving one's home should not be ignored. Conversely, assistance programs to encourage home ownership should not be frowned upon either. A tax credit is not 100% financing. The only 100% financing loans today I am aware of are VA and USDA loans.

My primary livelihood is based upon an industry that is working thru severe issues at this time. My part-time job is also a retail based position relying on goods being purchased and customer's coming in the door.

[montana59451]

I DO agree with you on some points, however, it is already been shown that banks will make more $$$ by foreclosing on homes and re-selling them. Therefore, the small incentives they get for making modifications is overshadowed by the money they can recoup on the sales of foreclosures. So now the government has found a way to help the banks get richer...by giving these tax credits it will allow people to get into a home that they otherwise could not afford because they do not have enough up front cash for downpayment. This makes at least $8000 or $6500 an outright gift from the American taxpayer, you and I.

Right now I know of NO American who is not in fear of losing their job, having hours reduced, or being asked to take a cut in pay. At that point, how can any person or any lender feel confident that the loan will not go into default and finally foreclosure? They CAN'T.

I agree that homeownership is the American Dream but let me tell you this-first and foremost (and I am not talking about those who got in over their heads with "creative" financing) help those who purchased wisely within their means years ago keep their homes. No one could have predicted this recession/depression, no one could have predicted the price of fuel would have skyrocketed. We bought a home that we put 30% cash down on. This was saved money-not a government gift-grant-loan. We faithfully made payments on time every month until business came to an almost stand still and thinking this was just a couple/three month deal put too much $$$ back into the business because the price of fuel for the trucks got ridiculous. Also this slow down started at our slow time of year anyway. But it did not get better, it only got worse. Now we are making money on someone else's misery (hauling repo'd equipment) and believe me that does not feel good either.


I own and operate a small trucking company and we primarily haul heavy oversize equipment and machinery. A year ago, we were delivering all types of new construction equipment for ***, Komatsu, Case, John Deere to Construction companies who purchased them. Exactly one year later we are hauling the very same pieces of equipment BACK as repos and I do not mean just a few. Just today we hauled a *** piece from Salt Lake City UT to Pasco WA...this was piece #500 sitting in the repo lot for *** Financial. Now let me take this one step further the rate we were being paid was 25% higher last year than it is today. If we want to stay in business, we needed to take this pay cut so we could eek out a living. Our company drivers have also taken a pay cut, no we did not cut their wages, they are paid by the mile and there are less miles to run which equals less money for them at the end of the week. Guys that were making $1000 per week are now making $600-700 per week gross. That's a big pay cut. Their lives and economies were built on that salary and we were always able to get those mileages for them...but not now. Their homes are on the foreclosure block too.

And it is NOT just our trucking company. We know many other drivers (owner/Operators) who are just barely making ends meet...and most drivers work 70 hours a week and drive for 60 hours, sleep in a truck, eat in a truck, live in a truck. And you ask "Why would they do that?", the answer is they are fighting to keep a roof over their kids heads, put food on the table and be happy seeing their families 2-3 days per month and then out on the road again.

The trucking industry will let you know when the economy truly starts to recover. Why? Because when freight starts to move, people are spending money and commodities are needed across the US. Just drive through a truckstop at noon and count how many trucks are in there empty. When the truckstops are empty, times are good.

Our government needs to create jobs, not band-aids, they need to get all aspects of the economy rolling.

If our government would strictly enforce their own MHA program and modify loans to help clean up the mess they created, then I would agree with the tax credits for homeowners.

[montana59451]

Don't know why *** came out that way, I was writing Caterpillar (***), not putting nasty words in.

[aubie37]

Montana,

These programs are a credit on taxes. Income and total tax consequences take into what will or will not credit to the new homeowner and again it does not apply as a down payment nor has this been a "down payment assistance" plan.

Examples for 8000 tax credit taken from http://money.cnn.com/2009/02/13/real...zed/index.htm:

Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

.... And continuing from the article above this statement below exemplifies the workings of the existing plan -- not as a downpayment program.

Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments.The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.

information cited from: New homebuyers to get $8,000 cash back - Feb. 16, 2009

[montana59451]

Well all I know is that my brother in law bought a house under the 1st time homeowner program and somehow (I don't know how, maybe he just has a really good relationship with his credit union), they allowed him to use this towards his downpayment. I don't know all the details, but I do know it was $8000 less than he had to come up with on closing day.

[jewls]

I was just reading on how one can use it toward a down payment, I believe it state specific and for FHA there is another rational/purpose.

Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions

[davephx]

Instead of the new buyer credit they should increase the incentives to get 2nd lien 2mp working. Or more incentives for HAMP modifications.

With so many desperate to save homes folks screaming for a loan mod and who SHOULD qualify under the basic terms of HAMP, but are being denied, lets help those (us) before spending the money instead on new happy home buyers that benefit from the miseary of those that have lost their homes. Especially in places like AZ where like 80% of sales are of foreclosed homes.

[booggs28]

Originally Posted by davephx

Instead of the new buyer credit they should increase the incentives to get 2nd lien 2mp working. Or more incentives for HAMP modifications.

With so many desperate to save homes folks screaming for a loan mod and who SHOULD qualify under the basic terms of HAMP, but are being denied, lets help those (us) before spending the money instead on new happy home buyers that benefit from the miseary of those that have lost their homes. Especially in places like AZ where like 80% of sales are of foreclosed homes.

I totally agree with this Dave - the tax credit is really benefiting the NRA, the banks and again pushing home prices up "falsely" once again. They are taking this incentive and proping up the housing industry - just like the cash for clunkers did for the auto industry - sales jumped - cash ran out - sales drop - this extention does nothing for those who are fighting to keep their homes - however, when mine forecloses maybe a first time homebuyer can get it at a good price and use the credit

[caldwellb02]

I recently heard from someone at the office that there are twenty-somethings (she knows of three) buying homes with 10% down, @ $250,000 mortgage, paying - wait for this - $500 a month. Yikes did the bells and whistles go off. I've asked her to see if she could get some confirmation. I mean if this IS true, then either they are getting interest rates at record lows or they are interest only and/or huge balloons at the end and/or ARMS - in other words - they are being set up to be the new "us" in a few years. The tax credit will do them no good in the long term. Has anyone else heard of this?

[Riley18]

All I know is that when I was a first time buyer back in the 80's when rates were 17% and 18% there were no federal credits. We had to do everything on our own. Now when I really do need help, the government is giving the money to other people who have never paid real estate taxes, etc. and telling them to go and take my house away from me with my own tax dollars. It is insulting and disgusting to think that the banks are just out there creating another round of suckers to rip off in the future. Meanwhile, the government has this tax credit down to an art, but for some reason simply cannot get the loan modification program to work. If I were the paranoid type, I would be thinking we are being conned.

[BadBobMo]

The 80% of sales are for foreclosed homes that are at the lower end of the market (It Cost You -$500,000)- (It Cost Them-$250,00) then add in using the Gov./Our Tax $$$ to buy our homes. And to have the gull to say that is good for you and yours, people are going to always go with what is best for their own interest period. Look 1st time buyers are not even looking at this as they are bottom feeders (Go watch Michele Moore New Movie) for a real definition.

[nativelasvegan]

Riley. We are being conned. Conned into thinking that the government is willing to help us keep our homes. Conned when a bank says they care and want to help us keep our home. As with the majority of most government programs, fraud is rampant. I do not know if this article has been posted before, but a 4 year old received or applied for a tax credit. tax credit fraud: Congress probes flaws in $8,000 home credit -- South Florida Sun-Sentinel.com