President Obama’s $825 billion proposed stimulus package may not put so much as a dent into the subprime mortgage crisis, but it might provide some relief for first-time homebuyers. How? In the form of a new and improved $7,500 tax credit.
As the law stands now, homebuyers have to pay the first-time buyer credit back over time. But if Obama’s stimulus passes in the Senate, they might not have to repay it at all. Not bad for those looking for their first home. But what about homeowner’s about to lose theirs?
Of course first-time buyers are thrilled that a proposed “modified,†money-saving version of the tax credit is folded into Obama’s massive stimulus package. But homeowners teetering on the brink of bankruptcy and foreclosure are wondering why the president’s stimulus isn’t aimed more at helping them keep their homes and, moreover, survive. Lawmakers pressured the president to add a stipulation into the package that would give bankruptcy judges the power to alter existing mortgages, but he didn’t bite. Why not?
So, the question on the minds of millions of homeowners inching toward foreclosure remains: Why has the government bailed out the banks, the “credit crunched†mortgage lenders but not them?
If congressional leaders have their way, that could soon change.
Congress is urging the Obama administration to spend $100 billion of the Treasury Department’s $700 billion Troubled Asset Relief Program to put the brakes on the skyrocketing housing meltdown. To many, that’s not nearly enough. At least it’s a start.
Coming up tomorrow on markshandrow.com, a closer look at the Troubled Asset Relief Program. What is it? How will it affect you?
Sincerely,
Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com
My question is what about thos of us who closed on a house march of 2008 because the 7500 deal is only for those who closed after April 9,2008; I wonder if Obama has considered making it available to anyone who closed on a house during any part of the 2008 year, my husband and I were first time home buyers March 13, 2008.
It seems to me if everyone got an bailout check we would pay down on our bills and that would start the economy. IF you filter thru the banks we all know what they do with it. they keep it in there pocketsa and we have to jump thru hoopsa for assistance.