This is exciting -- the Senate today voted on the economic stimulus package and approved a tax credit for up to 10% of the purchase price with a maximum of $15,000 for home buyers. It's an amended version of what the House passed, which means it still needs to go to committee. But this is double the amount of the present tax credit which, at the moment, isn't really a tax credit at all but instead an interest-free 15-year loan.
President Obama is behind this big time. Doesn't look like the Republicans are as enthusiastic, but they are in the minority. The President is urging members of Congress to vote on this without delay.
Stay tuned tomorrow for more developments as this piece of legislation works its way through our legislature. I'm stoked. How about you?
The Short Sale Savior, by Elizabeth Weintraub, coming soon to a bookstore near you.
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Elizabeth- It was the republicans who drafted that addage of the tax increase to $15,000. President Obama was not that happy about it because he just said that he wants to separate the stimulis bill from the housing bill. The issue is that it started with housing and has to go back to housing to restimulate the economy. Not the pork that is in the bill that is not even going to create jobs. President Obama will move to the center and accept the tax credits and tax cuts and Nancy Pelosi needs her pink slip. :)
Thank you for the info this is good stuff! Is this for lst time homebuyers or anyone? Thanks.
Elizabeth - That is really superb news! I've been busy most of the day, and hadn't seen this report! It's certainly a step in the right direction for getting the housing market back on track!
This is not a time to point fingers. This is a good start in spurring activity. The next step is to get all the fluff out of the package.
Here is hoping that the President will have enough support from both sides of the aisle to pass some of the things he is trying to do to help our country and our economy.
I don't think anybody is pointing fingers here. It's fact that the Republicans don't approve of some of the spending prgrams in the bill and want to amend the package. I hope the tax credit passes, and that's all I am promoting. I hope for cooperation, compromise and that all parties try to do what is best for the American people.
It is surprising that this has not made the news. Like I said, this is an issue that both parties helped create and both need to work to get a GOOD package on the table - leave the special projects and agendas on both sides for better times. Now is not that time.
Elizabeth,
There's still plenty of time to mess this up even more. Nothing is certain. :)
Steve
Good. Every new buyers should know this new package although I think job market is more important than anything else.
Elizabeth, I appreciate the spreading of potentially good news and something for all of us to look forward to however it is tweaked, cleaned, revised, etc. Thank you for posting.
I don't care who thought it up I just hope it passes. This ought to really help get people off the fence.
We were talking about this in the office today. This could realy fuel the housing market.
I heard this was coming down the pike...let's hope it happens! All they have to do is not approve 250,000,000 - 300,000,000 for black boxes for our televisions!
Elizabeth, the larger amount is good of course but I wish they would quit using the word credit.
Elizabeth - Thanks for the good news! I am wondering as Ann stated above is this for anyone or only 1st time buyers?
The question is whether it is a real credit or a loan like the $7500 "credit" is. But, it still isn't a bad deal. I would rather see something that helps prevent foreclosures, like a 4% readjustment of interest.
Hi Sharon: I read the story in the New York Times yesterday, but the Washington Post this morning reports the difference between the existing $7,500 tax credit and newly proposed $15,000 credit is the new version is for all home buyers.
It doesn't matter who added this provision, just that all our reps can work together to pass something that will effect change. Thanks for the update, Elizabeth!
This is great news!!! Do they plan to include those of us that already qualified for the original $7,500 in 2008 or is it for new home buyers for 2009?
If I bought a houe In january of 2009 before this passes, will I be able to recieve the $1k tax credit? Or is this applicable onyl to those who purchase after its passed?
Elizabeth, I can't wait th hear more about this one. It's good to hear that this may not only be for first time home buyers. I would also hope this is a true credit, and not an interest free loan. We will just have to wait and see.
Elizabeth, this sounds great so far.... I am waiting for the final approval! $15k won't go far here on the CA coast, but it's better than nothing, that's for sure!
Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice
Regina P. Brown
If we have already amended our taxes for the 7,500 credit, do we ammend again for the 15k.
I suspect many of these questions, Sarah, Aaron and Tayo, will be answered if and when the amendment gets hammered out. We might have to wait until Monday when Obama holds a nationally televised conference.
Okay. Now we are getting somewhere. Whoop whoop! Yeah bay-bay! ;-)
Don't count your chickens just yet...$15K is most likely going to merely by the $7500 credit to first time homebuyers that expired in December 2008...good Jan-Sept. 2009 purchases of primary residences.
I'd love to see the $15K tax credit go through, the real estate market could certainly use the boost. Let's keep our fingers crossed for something (anything) in that economic stimulus package.
Yes, it turned out to be $8,000 and it applies only to first-time home buyers. I wrote an article for About.com about the $8,000 home buyer tax credit.
Now you see it, now you don't. 15k would have been nice, but 8k is nothing to sneeze at either. I wish I were eligible!
I would appreciate if you could clarify something for me that i read on your information on this, is it true that first time buyer in this care only means if you havent owned or purchased a home in the last 3 years? Not that you have NEVER owned and purchased a home? I purchased a home about 11 years ago and ended up having to file Bankrupcy with my wife and havent owned a home since and renting is not working anymore!
Elizabeth..One of my clients just asked me about this.. I am so glad you blog posted this and that i joined this group..Thank you
Helpfulhannah
I have to say I hope that this incentivizing stops. It isn't good for the long term health of the housing industry... and it isn't good for the long term health of the economy...