yesterday, i spoke briefly about pending tax and Government legislation that would institute many changes including tax legislation to benefit home builders and real Estate consumers to help stimulate home buying.
Here is a breakdown and purpose of some of the legislation in the package titled the Hope for Homeowners Act
- HOPE for Homeowners Act would create a new initiative within the Federal Housing Administration to refinance mortgages of distressed home owners.
- funding for foreclosure prevention counseling
- emergency appropriation $4 billion -Community Development program (CDBG) providing cities that have been most adversely affected by the foreclosure crisis desperately need some assistance to get foreclosed and abandoned properties back into the hands of qualified homeowners.
- bankruptcy provision could help more than 600,000 homeowners by allowing them to modify their mortgages in bankruptcy.
- improve disclosures to borrowers earlier in the lending process
- modernize the Federal Housing Administration (FHA).
- tax credit to buyers of homes in or near foreclosure
- seller breaks for short-sales tax treatment
- tax credits to builders to prevent bankruptcy
according to Chris Dodd, Connecticut Senator , and
Chairman of the House Banking Comittee,
“this proposal is not a bailout. It would provide no windfall to anyone.” ….
“Everyone would take a financial hit — homeowners, lenders, and real estate investors. But we aim to spare people a level of pain, loss, and uncertainty that would only drive our markets and our economy further in a downward spiral.”
The powers that be, our government, is acting, to work to stabilize the real estate and mortgage industry so that homeownership can continue to be the foundation of wealth for current home owners, today’s buyers and future generations of Real Estate buyers and home sellers to come.
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Copyright © 2008 By James Wexler, All Rights Reserved. *Real Estate Tax Law Changes to benefit home buyers*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.
