We need more US government tax incentives for home and property buyers in the United States, and less focus of time and money on loan modifications.
- BloombergNews.com reported that "U.S. mortgage applications fell last week by the most since February, defying efforts by President Obama's administration to revive the housing market." See article ~ Mortgage Applications Are Down ~ Bloomberg News, July 1, 2009.
The government's focus on loan mods is not working to stimulate the economy, and it's not tax encouragement for home and property buyers.
- Obama's new Home Affordability Refinance Program (HARP) raises its maximum Loan-To-Value (LTV) limit from 105% to 125% (I do not support this).
Spending so much taxpayer money on loan mods is not reducing unemployment. The decline of mortgage applications shows that buyers and owners are discouraged from getting home loans.
To improve the housing market, bills have been introduced by U.S. Senator Johnny Isakson (R-Ga.) and Rep. Ken Calvert (R-Calif.), which would bump up tax credit to $15,000 or 10% of the home's purchase price, whichever is lower. Both bills would expand tax credit to be used by any buyer, not limited to first timers, and remove income limits on qualifications.
Let's support these U.S. House and Senate Bills that will expand the US income tax incentives for home buyers.
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Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.
www.ExploreTheOC.com
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Harrison - I like the idea of upping the tax credit, and opening it up to anyone purchasing their primary residence. But, it will still not fix the systemic problems in the economy, especially those that will be driven by the new taxes that will be imposed.