Is it the End of the World? No, it is the End of the Stimulous Package

By
Mortgage and Lending with Acre Mortgage & Financial, LLC NMLS # 390719

First Time Home Buyers should NOT worry about the $8,000 Federal Tax Credit - WHY:

(1) Once this stimulus package ends (April 30) - prices will drop - in some cases more then the $8,000 you would have gotten from the feds - because many ill prepared buyers will leave the market - hence sellers will have to reduce prices to attract these buyers back into the market;

(2) Sellers that were pricing their homes slightly above their mortgage balance will now have to do a Short Sale because of the price reduction in the market - even their mortgage companies will be encouraging them to Short Sale in order to prevent a foreclosure; and

(3) There will be an attempt by the US Dept of Treasury to stimulate Short Sales in order to slow down the foreclosures across the USA starting in April 2010 by offering sellers "relocation assistance" of at least $1,500 to help them move out of the house that is under water or upside down because they owe more then the house is worth.

So once again, this is a great market for first time home buyers working with the right real estate professionals that understand the market.

Read more about Short Sales on www.Facebook.com/GautierRealtors

Comments (4)

Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Nice post Eliud. Making a positive out of a negative. I haven't had the tax credit rush we are supposed to see yet so I am hopeful it won't be the slow down after either.

Mar 27, 2010 10:14 PM
Dan Rosenberger
Harvest Realty - Westfield, IN

I have not seen the sentiment to extend the tax credit like there was last year.  And last year's Nov. 30 deadline would have been a headache, since it was based on date of closing, not date of contract - and Nov. 30 followed Thanksgiving weekend.  I would be surprised to see the current April 30 deadline extended.  There will certainly be some cases where the sellers will accept lower offers that might partially or fully offset the amount of the tax credit.  But it won't feel the same since there won't be a check issued for $8000 or $6500.

Mar 27, 2010 10:28 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

All of these tax credits for home buyers are breaking the American bank.  I appreciate that the government has been trying to right the housing market but I think the long term consequences of the tax credit far outweigh the benefit that it has provided to the marketplace. 

Mar 27, 2010 11:17 PM
Eliud Gautier
Acre Mortgage & Financial, LLC - Deptford, NJ
Branch Manager

This is why we have to prepare ourselves for a totally new opportunity in real estate combined with social networking, short sales and rehab loans.

I am getting ready by educating myself through the assistance of other realtors around the country that are willing to share information with those that want to learn. Many of them are on Active Rain. So thank you for your willingness to be part of our own stimulous package mostly consisting of education.

Mar 28, 2010 03:58 AM