Expanding Help for Home Buyers
We have seen a boost in first time home buyers because of this incentive ["Expanded First-Time Home Buyer Tax Credit Becomes Law," usnews.com]. Most of these home buyers were either renting or living at home so I feel this does help reduce the housing inventory and has a positive impact on the economy. In fact I sold one of my houses to a first time home buyer and now I am seeking another investment property as I have freed up some cash. I believe this is a great program and causes a chain reaction to keep money flowing.
Comment by Mike Wendricks of IL
The help should also be there for those of us who have existing mortgage loans that are still having trouble paying the bills. The tax credit would be more helpful if it worked for those of us who bought homes say within the last three to five years. We could apply for this help to re-finance or help with the mortgage that we already have instead of only helping the people who have bought homes with in the last year (2009). I am not going to walk away from a mortgage or the responsibility I have at this time to buy a new home and get a $6,500 tax credit, just because I can. I have not been able to find help since my husband lost his job over a year ago.
Comment by Barbie Price of TX
Giving a tax credit to first-time homebuyers provides the economic benefit of reducing the number of homes on the market and stabilizing prices in a market flooded with homes lost in foreclosure. It's unclear how extending the tax credit to homeowners who would be exchanging one home for another would yield a similar benefit.
Comment by Paul Seibert of CA
What about a tax credit for people who don't want to buy a new house but have paid their mortgage payments on time? I have lived in my home almost 10 years, have never missed or been late on a payment. I understand you are trying to stimulate the economy but a tax break would certainly give me some cash to do so. We do everything right and we still don't get a break.
Comment by Barbara Marshall of MT
I will have lived in my home fives years come April. My new husband and I signed a legally binding contract mid-October and are closing in December. No matter how you slice it, we get screwed out of any money or credit the government is offering. I too am purchasing a house worth more than my existing home. We are helping to "boost" the economy, but get no reward. The only perk about this extension is maybe someone will actually buy our house now. The market has been depleted in this area.
Comment by Michele of IL
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Reader Comments
CITI should be made to help borrowers
Any lender that borrowed taxpayer money should be OBLIGATED to modify loans for loyal, responsible customers. Anyone with a mortgage in good standing with, say, CITI, should be able to earn the new low rates that are available. They should not have to miss payments or suffer a credit hit to then earn assistance. This would make people feel better about their underwater homes and free up money that would help either pay off existing debt or be put to use through new purchases - boosting the economy. The thought that CITI gets taxpayer money and then refuses to assist homeowners is flat wrong. Worse, CITI can use taxpayer funds to offer loans AT INTEREST back to the taxpayer! This is absurd. Imagine giving your friend $100 only to have your friend do you the kindness of offering you $100 back, but at 6% interest? This is crazy! The banks b*tch and moan about people walking away without doing anything to meet them half-way and possibly keep them in the house. What is worse, giving a person a new 4.5% mortgage and keeping them in the house? Or letting them walk away. Apparently the bank prefers the latter and the quick, if lesser, cash that comes with it.
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