One component of the plan would lower the average homeowner's mortgage payment, which can easily take up 38 percent of a family's income. The goal of the plan is to lower most homeowners' mortgages to 31 percent of their income. A family with a household income of $50,000 will, on average, put $19,000 toward their mortgage. Under the president's plan they'd pay $15,500 toward their mortgage for a savings of $3,500. Lenders would also be required to write down a mortgage principal rather than interest rates, with the goal of helping to reduce the chances of default. The plan would also allow bankruptcy judges to modify mortgages, but only mortgages closed before the law is enacted are eligible. Homeowners would also need to inform their lender or loan servicer in advance of their intention to file for bankruptcy protection. According to a February 3rd article in the Charlotte [NC] Business Journal, the Charlotte Home Builders Association is petitioning members of the US Congress, upset over the total disregard for the housing market when developing the so-called “stimulus package” of $800+ billion.The Homebuilders would like to at least see the $7500 tax credit for first-time buyers raised to $10,000, and extended through the end of 2009. I have also heard some folks argue that it should be doubled, and not required to be paid back. But in any event, I would like to at least see the Congress of the United States acknowledge that the housing market needs help. After all, it was the housing market that first felt the effects of the recession.
The Democrat-controlled house didn’t have any problem seeing the value in $300 million for contraceptives, $75 million for tribal alcohol and substance abuse reduction, and another $75 million for smoking cessation. They are also ready to pay back Hollywood for its extreme left-wing support during the campaign last year, by allocating $246 million in tax breaks for movie producers to buy motion picture film. The $7500 tax credit will not have to be paid back.
The home buyer tax credit will work like this. All taxpayers who buy a home in 2009 will get up to 10% of the purchase price back in a tax credit up to $15,000 (on a $150,000 home). The bill will not be retroactive and only affect home purchases after the bill is passed.
Where’s the help for the housing industry in this package? It seems to have been totally ignored. If you are in the business of building or selling homes, or in any of the supporting trades, like furniture, carpet, appliance sales, etc, this stimulus proposal doesn’t do much to help you out. Write or email your representative or your senator, and let them know that you shouldn’t have to be a chain smoking alcoholic Native American independent filmmaker to get help from the stimulus package.
Where’s the help for the housing industry in this package? It seems to have been totally ignored. If you are in the business of building or selling homes, or in any of the supporting trades, like furniture, carpet, appliance sales, etc, this stimulus proposal doesn’t do much to help you out. Write or email your representative or your senator, and let them know that you shouldn’t have to be a chain smoking alcoholic Native American independent filmmaker to get help from the stimulus package.
