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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (125995)	5/29/2008 7:07:05 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

Real estate bigwigs pushing tax credits to buy distressed homes Is anyone else bothered by this? blogs.tampabay.com The National Association of Realtors and the Mortgage Bankers Association are pushing the federal government to pass a tax credit for home buyers. The Feds and Florida already favor home purchasers with low interest rates, mortgage interest tax write offs and taxpayer subsidized insurance. Now they want further hand-outs. But note the catch contained in this statement from the mortgage bankers: In this time of declining home prices, Congress can use new tax incentives to encourage first time homebuyers and others to purchase foreclosed, abandoned or other distressed properties. Doing so will spur the demand for housing, which will have the effect of slowing and possibly even stopping the nationwide decline in home prices. Sometimes the best government policy is no policy. You helped create the subprime mortgage mess by insisting banks give loans to bad credit risks. Now you reward those same bad credit risks by subsidizing the sale of their homes? But mostly this is a naked bail-out for mortgage bankers. The credit seems designed to help banks dump properties repossessed from default homeowners. Let's see: A subsidy for homeowners who walked away from their debts and the bankers who made it possible. Where does this leave the financially responsible?