Even though the federal tax credit may not make a come back, there are lots of reasons why it is still a great time to purchase a property.
One of the most important factor that affects most buyers is interest rates. As the rate gets higher, the amount of money a person can qualify for would be less. Interest rates have been really low historically speaking and with the problems we are facing today, the rates will go back up. I don’t think interest rates will ever be lower then what they are today. 30 years ago, I thought I would never see rates as low as they are today. We could see rates as high as 18%, just like it was in 1981, or even more.
Are you going to make the June 30th deadline? Hopefully you will since it’s been a stressful process. If you don’t make it, then let’s hope that Congress votes to extend the deadline 3 more months. The Senate has approved the extension because of the enormous back log of sales and now it time for Congress to consider the extension.
According to Vicki Cox Golder, president of the National Association of Realtors, said the extension was a matter of fairness.
“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes.”
I think it’s the right thing to do, especally since it’s not the buyer’s fault for not meeting the deadline.
President Obama has announced that he has a program design to help homeowners that have been unemployed and other struggling borrowers. This is a program that can help stabilize home prices. The White House is also considering a program that would suspend mortgage payments for a unemployed homeowners for 3 months and give them 3 opportunities to extend the payment difference for up to 1 year.
Do you think that the governmental programs from the president are helping the economy to get better? Well, it seems like it has based on a study by Realty Trac. February’s forclosures have declined by 2% from the previous month but still 6% above the level reported in February 2009. This means one in every 418 U.S. housing units received a foreclosure filing in February.
I think we are heading in the right direction but I think it is still too soon to say that we are out of the woods.
In efforts to help everybody who needs help, HUD has updated their list of counselors. This will help you find answers to help you with your financial problems. This is a free service and should be your step in trying to get help from your government.
If you need guidance or more information about your options, HUD may have answers for your situation.
This month has been wet and going by quickly. It’s almost February. I hope this year be better for all. It’s seems to be better. Last week FHA has announced that they have guidelines for lenders to help homeowners who are having a hard time with their payments, due to unemployment, loss wages, etc., and are not behind on their payments. This is part of President Obama’s new law “The Helping Families Save Their Home Act of 2009″. In the past, many home owners had to be late before the banks would assist them with their problem.
Here’s a fresh idea to help the less fortunate people living on the streets. There’s a non profit organization, Home Free, which has an initiative to eradicate homelessness in urban areas by providing free wireless internet, social networking and resource allotment. Their goal is to provide a resource for the homeless which will allow them to get off the streets.
Our government is trying to assist more homeowners that are facing foreclosure with senate bill S1731 . The bill’s intent is to force the lenders to do a loan modification analysis on loans that are in trouble or going to be in trouble, to see if it is possible to lower their payments. By keeping people in their homes and not going into foreclosure, property values should not decline and will help hold the prices up for the area. If more foreclosures hit the market place, it would drag all of the other homes for sale in the area down.
The market is showing signs of a slow recovery, but it is changing. One of things that is helping the recovery along is the tax credit. The federal government will give qualified buyers a $8000 tax credit for purchasing a home. That’s right!! $8000. So, if you’re planning to buy a home, now is the time before the program expires, 11/30/09. The purchase has to be completed by 11/30/09 to qualify. There is talk about extending the program but there is no guarantee that it will be extended. For more information about the program, please click on the link below or let me know and I’ll be happy to assist you.
http://www.realtor.org/government_affairs/gapublic/homebuyer_tax_credit
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