Because of the on-going debate in Washington DC about 'Illegal Immigration', what happens to these qualified home buyers and home owners with only ITIN (Individual Tax ID Number) and have no legal residency?
On July 11, 2007, Prince William County Board of Supervisors have passed an ordinance "to deny public services to illegal immigrants and orders local police to check residency status of anyone caught breaking the law". The ordinance passed by majority of votes was introduced by John T. Stirrup Jr, one of the PW Coutny Board of Supervisors and was reported in Washington Post.
As I understand from the mortgage business perpective, there are still plenty lending institutions out there with ITIN mortgage programs for qualified homebuyers with ITIN only. And these qualified homebuyers with ITIN are still applying for this kind of mortgage to purchase a home. As a Realtor®, I think this is very good for the real estate market because it gives these people with ITIN the opportunity to invest and own a home and it's provides business opportunities to Realtors® and Mortgage Brokers. I also think it benefits the local, state and federal government because of the potential property tax revenue it generates ones they owned a home. Overall I think it's a great benefit in general, but it leaves me wondering, how will the anit-Illegal immigration law affect the future of real estate?
My two cents on this matter:
Anti-Illegal Immigration Law will definitely affect the future of Real Estate. Think about this for a minute. If the anti-illegal immigration law is passed by US government without provisions to protect the law abiding immigrants that pay their taxes, that respect and believe in the law and the Constitution, and that have invested in owning their dream homes, I think will have grave economic impact to the Real Estate Market. These people will either start selling their property and flood the market increasing the inventory or worst case scenario leave the country and stop paying their mortgage and property tax, which then could lead to more foreclosure. Thus, it may effect the current prices of homes in the future far more worst than are currently seeing now. I hate to be the pessimist but when reality bites, it may hurt.
What do you think?