A while back I mentioned that I was working on my suggestions for solving the real estate crisis in this country. I have drafted parts of my plan numerous times and seem to always get side tracked. This morning however when I heard mention that there was a discussion going on about ending the mortgage tax credit. I was so shocked that I decided to spend a little time tonight talking about part of my plan.
Part of my plan calls for doubling the mortgage tax credit for all primary residences (current on their mortgage) for a period of 5 years. 5 years, 10 years, ...someone else can set the time frame and the conditions but here is the rationale. People who have fallen months behind on their mortgages are going to foreclosure or going to work on a short sale, we know it, they know it, it simply it is a matter of when. But we need to address the people who have struggled to stay current, are not walking away from their upside down homes, and do what we can to encourage them to not even think about walking away. You want to reverse the current real estate trend, reward home ownership.
Where will we get the estimated (a number I heard) trillion dollars this would cost, how about we charge a transfer tax on every primary residence that ends up in foreclosure, wouldn't that encourage banks to work harder and faster on short sales and loan mods.
Increasing the credit, encourages people to stay put. Puts more money into the economy that they save on their taxes, and hopefully promotes home-ownership which too many people are starting to question.
Your thoughts and ideas are appreciated but please at lease express your support on not touching the mortgage tax credit.