US Senator Johnny Issacson and former Realtor and owner of the old Northside Realty - commented on a proposed Congressional Bill ( Congress Considers $15,000 Rebate Checks For All Home Buyers! ) As downturns in the economy go, Johnny mentioned this downturn is a more "Significant event" than past downturns, and that something was needed to get it going again. In the Atlanta area we have had more than our fair share of inventory that cannot be absorbed, and a fast rising foreclosure base that keeps building. The estimated cost is about $15 Billion Dollars for the home buyer rebate plan, but it is meant to spur the absorption of vacant homes, and pump liquidity back into the markets. Many of the Republican leaders of the Senate have signed on to the idea, but it still has to be sold to the Democrats. If enacted, this may be a great thing for real estate across the country.
That will definetly get some liquidity going. Who wouldn't buy with lower prices, great rates, down payment assistance and seller concesions. Then to get a $15,000 check to boot? Great piece of information.
Jim this is a great idea! I made a post about this topic myself last week. We need to give the buyers who are sitting on the fence watching and waiting a legitimate reason to get in and buy now.
Did you read another proposal is to offer cities $4 billion dollars to knock down and rehab foreclosures? Geez, not every foreclosure is inhabitable. Talk about a complete disconnect with their constituents.
Jim- I commend Johnny Issacson for trying to come up with a solution, but I don't think he thought this out too well. For truly honest people, this would be great; albeit, the lender might balk at it. However, as good as this rebate seems, it would be ripe for scammers. Those folks would be cooking the books just to close on a house to get to the $15k -- and then walk away from the house.
Regarding the lender, any kind of cash rebate like that, before or after closing, would be deemed an inducement to buy. The buyer is being paid to buy and this would be of a concern to a lender. I just don't see how it would work. Fannie Mae guidelines would condition a price reduction on the home.
Jim, they actually did something like that in DC back in the 90's, and I think it's still in effect. It was a $5,000 federal tax credit. And it worked, having a sort of trickle up effect. This started when Marion Barry was mayor, and people were leaving DC in droves. It helped stem the flow to the suburbs.
Where are they planning to get the $15,000? As a taxpayer, I'm not sure I like this idea. Much as I hope this recession/meltdown/housing crash ends soon, I know there is no free lunch and that it has to come from somewhere!
Stephen Graham Buyer's Agent - Georgia - GA If anyone could come up with a real estate solution it will be Johnny Issacson! maybe he'll come back with Northside Realty's 10K Program! LOL!
Jim Crawford ~ Atlanta Real Estate-ABR E-PRO
Atlanta, GA
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Wow, that's an incredible incentive....it might almost make me want to buy something there!