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Congress approves a $7,000 tax credit for purchasers of foreclosed homes

ILM Realty Well, today was the day. Senate passed the bill that gives buyers of foreclosed homes a $7,000 tax break. That's $7,000 in the buyer's pocket. It's not a write off, it's a tax credit. This is some good news for people who want to buy foreclosures.

Also in the bill are tax credits for builders and others in the housing business. There was a lot of controversy over this part of the bill. I am not an expert on the matter, but it seems as though there are some good macro-economic reasons why this was a good idea. Many of the people who were not in favor seemed to think "Why would we give credit to homebuilders? They are amongst the guilty parties who got us into this mess."

Also in the bill are funds intended to help subprime homeowners tyrying refinance to get out from underneath bad mortages via subsidies.

The bill now must be reconciled with version passed by the House and sent to the President for approval. It's not a law yet, though I read that it was well recieved, but there are a few concerns.

There are several other intended benefits of the bill. More additional information can be found at:

http://money.cnn.com/2008/04/02/news/economy/housing_bipartisan_draft/?postversion=2008040320

http://ap.google.com/article/ALeqM5ieJmw1-0gEEsao_k35ZuHRRmj1FQD8VQFIJ00

http://abcnews.go.com/Business/Economy/story?id=4583317&page=1

Posted by Stacey Brown, REALTOR® on 04/03/2008 08:21 PM

Comments (10)

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10 Comments on Congress approves a $7,000 tax credit for purchasers of foreclosed homes

this is very interesting . look forward to researching more about this. thanks for the info

04/03/2008 08:47 PM

by Brian Keller (Keller Realty and Auction)

I haven't been following this like I should. Thanks for reminding me Stacey!

04/03/2008 08:58 PM

by Tre Pryor

I thought I heard something about the tax credit on the news this morning but I wasn't sure until now. Thanks

04/03/2008 09:09 PM

by Sandy Keller (Coldwell Banker Chicora)

This is great news. It will really help out my first time homebuyer who is about to buy one.

04/03/2008 09:18 PM

by Chris Ann Cleland, GRI (Long & Foster)

This is great. For investor, of which I am, this is great.

04/10/2008 09:04 PM

by JR, in Lathrup Village, MI

This is definitely worth checking into. Glad to hear about it.

04/11/2008 03:58 AM

by Carol Judd , Vernal Utah Real Estate (Century 21 Dart Realty)

"Congress approves a $7,000 tax credit for purchasers of foreclosed homes" Don't you mean to say: "Senate approves a $7,000 tax credit for purchasers of foreclosed homes" I hope the tax credit is approved by the House and signed by the President. I plan to attend a sheriff foreclosure auction and bid on a property with a $26,000 minimum bid. The $7,000 tax credit would help offset renovation expenses.

04/12/2008 08:11 AM

by Amanda Reconwith

WOW that is huge. Especially since it is a credit!! Im going to be on the lookout for some good foreclosure deals for even myself! What is the next steps on getting it completely approved?

04/12/2008 02:53 PM

by David Miller Spring Hill Middle TN Real Estate (Crye-Leike, Realtors)

The bill now must be reconciled with version passed by the House and sent to the President for approval. This may take a couple of months.

04/12/2008 07:31 PM

This should stimulate the market in our area (Washington DC/Annapolis MD/Baltimore MD) but we may not have as many foreclosures as there are in other parts of the country. I got a call on this today and did some research. I hope the house passes the bill and the president signs it into law. Do you think it will be retroactive? If so, a $7K tax credit is great news!!!

04/21/2008 04:43 PM

by Stephen Howell (Coldwell Banker Residential Brokerage)

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