Wednesday, April 28, 2010

Death Knell of Tax Credits

The end of the Housing Tax Credits is being heralded like the end of the Industrial Revolution.  Perhaps its epitaph will be studied in 1st Year American History in a few years as the Barons and inequities of the Industrial Revolution are.

Two days remain for all buyers desperate for the tax credit to step up and lock into a house of  their choice.
I would counsel all buyers(as I have over the past few months) to be careful about buying a house so for the sake of the tax credit.  Though an extra-ordinary once in the life time opportunity(hopefully so as it cost the Treasury and us taxpayers a bunch),  $8000 or $6500 won't go very far to satisfy one if the house selected doesn't meet one's personal needs or the families needs.  Or worse, the house is just too small, too far from the city, too close to the city, too money is worth that!

Yet, on the flip side, we have buyers of short sale and foreclosed homes that now wish they had locked in on the non-foreclosed or non-short sale home to get the Tax Credit.  These buyers will be left holding the bag
as the bank continues not to talk with the seller and hold the ratification of the contract past April 30th.
Not that it will seem that the bank was over concerned about the timing of their response.

You have heard as I have that foreclosures are expected to swing up with summer.  Could it be that it will be due to all the Short Sale homes that Banks will hold as foreclosures that they could have sold with a Tax Credit if they had simply responded in the timely manner required????  Now that will be a question
to study in your college Economics class in the coming years!!!

But rest assured, the American Public is bright and hardworking.  They know they deserve quality housing and will continue to buy and sell homes as their life transition through the many stages of life.   
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