Homebuyer Credit Gets Cut

[Conan71]

Sounds like on the compromise the $15K tax credit got scrapped in favor of an $8000 one.

From what I've been able to find, it's a first time buyer credit (have not owned a home in three years), it does not have to be re-paid and will apply to home purchases between 1/1/09 and 8/31/09.

There will be some income limitations, I've not been able to find those yet.

[we vs us]

It's for the best that it got chopped. I think that it could've gotten chopped more, and I say this as someone who -- at least at this point -- intends to take advantage of the $8k.

As CF said on a prior thread, it'll serve more to prop up the bubble than allow it deflate.  A better fix would've been to require mortgage lenders to attempt a certain percentage of foreclosure workouts relative to their total holdings.  That would address a lot of the existing mortgages on the books and indirectly help give a market value to the bundled securities made up of those mortgages.  

Really, the only thing the $8k will do is help sop up the extra supply of housing out there. And I can tell you it's going to be hard to be a first time home buyer if I or my wife are unemployed, or are working three minimum wage jobs just to stay afloat.

[sgrizzle]

How about applying that towards the principle on the house I already have and plan to keep?

[Conan71]

I agree it is running back into an industry which helped spur this debacle in the first place.  It won't make a substantive difference in markets which are affected by high unemployment right now, which happen to be some of the real estate markets which got over-heated.  IOW- It's not going to get rid of a glut of foreclosed properties if people don't have enough income to get a loan which was a big piece of this debacle in the first place.

Mortgage work-outs are only appropriate if the borrower has enough income to make the loan perform.  If they have no income, how long could or should the government be expected to intervene in the process?

For those who believe in voodoo economics (I do) the $8000 credit *might* be ploughed into home improvements which helps create jobs in the labor markets and in the home improvement product market, or someone might buy a car with it, or invest it in green technology like a ground source heat pump or solar for their home.  There's still estimated to be about $1500 in total credits for energy efficient windows, heat/air, roofing, etc.

This $8000 credit will go a lot further for consumer spending than the $400 credit that about anyone (I believe that's the tax cut for 95% of all Americans) will get.

$8000 isn't $15K but it still beats a sharp stick in the eye any old day. []

[guido911]

According to this article workers will get a whopping $13 added to weekly paychecks:

http://www.breitbart.com/article.php?id=D96A51G80&show_article=1

Stimulating.

[we vs us]

quote:Originally posted by sgrizzle

How about applying that towards the principle on the house I already have and plan to keep?

Can we count on you then to take whatever you weren't going to put towards principle and spend it on a(nother) flat screen tv?   No?  How bout a GMC Yukon?  Vacation to the Mall of America? Seriously, it's your call!

[we vs us]

And I definitely don't think everyone should get a redone mortgage.  There're going to be foreclosures, and that's just the way it is.  I definitely understand that.  But there're supposedly a lot of borrowers with good credit out there who took subprime loans because of the teaser rates and general lack of upfront costs, and they're still being foreclosed on.  Even converting prime buyers into 30yr fixed would stabilize some of the market.  

The unemployment thing is going to become a major issue really quickly.  You can't very well qualify for credit if you're unemployed or making $9.00 an hour.

[sgrizzle]

quote:Originally posted by we vs us

quote:Originally posted by sgrizzle

How about applying that towards the principle on the house I already have and plan to keep?

Can we count on you then to take whatever you weren't going to put towards principle and spend it on a(nother) flat screen tv?   No?  How bout a GMC Yukon?  Vacation to the Mall of America? Seriously, it's your call!

If they give me $8000, I'll go buy two flat screens, and a large "Judgement Day" from Joe Mommas!

[we vs us]

quote:Originally posted by sgrizzle

quote:Originally posted by we vs us

quote:Originally posted by sgrizzle

How about applying that towards the principle on the house I already have and plan to keep?

Can we count on you then to take whatever you weren't going to put towards principle and spend it on a(nother) flat screen tv?   No?  How bout a GMC Yukon?  Vacation to the Mall of America? Seriously, it's your call!

If they give me $8000, I'll go buy two flat screens, and a large "Judgement Day" from Joe Mommas!

I'll be happy to donate my $8k to your defibrillator.

[Conan71]

quote:Originally posted by guido911

According to this article workers will get a whopping $13 added to weekly paychecks:

http://www.breitbart.com/article.php?id=D96A51G80&show_article=1

Stimulating.

What have I been saying all along?

Come on now, say it with me:

CHUMP CHANGE!!!!

[guido911]

quote:Originally posted by Conan71

quote:Originally posted by guido911

According to this article workers will get a whopping $13 added to weekly paychecks:

http://www.breitbart.com/article.php?id=D96A51G80&show_article=1

Stimulating.

What have I been saying all along?

Come on now, say it with me:

CHUMP CHANGE!!!!

Here's that Obamabot who says she will not have to worry about gas and her mortgage once Obama  gets elected:

http://www.youtube.com/watch?v=P36x8rTb3jI

[Hometown]

I remember when Ronald Reagan's tax cut showed up in our paychecks.  I had to pull an old stub to see any difference.  It was a matter of a few dollars.  Of course, I was a student and not upper income.  The upper crusties got really big cuts.

Not long after that Reagan's huge social security tax increase came through.  It took a big chunk out of my paycheck.  We've paid those increased ss taxes all these years.

Of course I don't mind paying taxes.  I believe in carrying my share of the common burden.

What gets on my nerves is the absense of good wages.  You know -- like Tulsa.

[TeeDub]

There are plenty of opportunities in Tulsa to make good wages.

Of course you have to be at least mildly intelligent and have at least little work ethic.


As for paying taxes...   I am all for paying as little as possible.

[we vs us]

quote:Originally posted by TeeDub


There are plenty of opportunities in Tulsa to make good wages.

Of course you have to be at least mildly intelligent and have at least little work ethic.


As for paying taxes...   I am all for paying as little as possible.

Or a MIG/TIG welder.

[nathanm]

quote:Originally posted by Conan71


From what I've been able to find, it's a first time buyer credit (have not owned a home in three years), it does not have to be re-paid and will apply to home purchases between 1/1/09 and 8/31/09.

Guess we should have waited to buy. We get to start giving our $7500 back in chunks starting in 2010. [B)]

Seems a little unfair, but nobody ever said life was fair.