Housing Relief Act of 2008 - Summary of Terms
In an effort to soften the sharp housing downturn, the Senate recently passed a $150 Billion Bill to provide relief for homeowners, in theory, for homebuilders, for certain.
The “foreclosure relief” bill, which now moves to the House for approval, sounds helpful, but falls shamefully short on solutions or assistance for homeowners losing their houses. In fact, the only set aside for those facing foreclosure is a $100 million in counseling assistance, which possibly makes sense to prevent over-borrowing, but accompishes nothing after the fact.
Relief for Homebuyer’s received a mention in the bill, but the real help offered was for the benefit of bankers, developers and builders.
The bankers and builders receive a $25 Billion Dollar Tax Rebate and plans to steer buyers to their foreclosed properties, with the lure of a $7000 future tax credit. The bill provided a $0.00 tax credit, if homebuyer’s purchase a home owned by anyone else.
Translation: Homeowners, who are paying their mortgages on time, will suffer an immediate $7000 loss in home value, as they attempt to compete against lenders, builders and developers when selling their property.
In Conclusion: The $150 BILLION Dollar Relief bill harms taxpayers and homeowners, and does little for families in financial trouble. The only “help” offered is for the politicians, banks and the powerful, cash laden, National Association of Home Builders, who threatened to stop handing over millions of dollars in campaign donations, unless they were cut in on the taxpayer give away. The result. When the votes were counted… the money counted more. The Senate sealed the deal by a 84 to 12 margin.
Question: Have we had enough, already??? Don’t you think if the US Congress really wanted to help the housing market, they would simply offer a $7000 tax credit to anyone who buys a home that they intend to live in (ie: no investors), no strings attached??? Instead, homeowners and buyers are penalized in favor of the banks and builders who likely created this mess in the first place.
Action: I urge everyone who cares about their home to immediately write their State Representive in protest, before this bill is passed. We don’t have millions of dollars for lobbiest or bribes to get their attention, but we do have numbers and the power of the pen on our side.