Is the Tax Credit going to be extended?
After studying 40,000 home loans in three cities over a period of 30 years, the National Resources Defense Council and the Center for Neighborhood Technology determined that the likelihood of foreclosure grew as neighborhood car ownership levels rose. The research suggests that if homeowners do not need to own a car, they are better able to weather financial shocks such as spiking gas prices or a job loss. The study recommends that lenders factor location efficiency and borrowers' transportation costs into underwriting decisions, thus providing "proportionally better borrowing terms for purchasers of location-efficient homes."
Is third time a charm for the extension of the federal tax credit for buying a home? The National Association of Realtors and other industry groups again are pressing U.S. lawmakers to extend the home buyer tax credit. Legislators have done so twice, but realty practitioners say the housing market is still fragile and the incentive is a sorely needed shot in the arm. They are stressing to elected officials that this is an election year for many and that a series of other market supports are already in the process of being eliminated. Finally, NAR and other industry groups argue that the credit should be renewed because banks are taking too long to approve short sales. Any bets on the outcome?
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