An interesting debate is going on in Washington. The National Association of Realtors is doing everything it can to get the $8000 tax credit extended beyond the November 30, 2009 deadline.
However, the White House is still undecided. In a recent CNN article, Shaun Donavon, the Secretary of HUD says the statistics aren't in just yet to show whether this tax credit has spurred the economy.
Apparently the IRS is screaming all types of fraud saying that a significant portion of the tax payers filing for the tax credit may have done so fraudulently. Over 107,000 questionable files have been opened by the IRS according to Fox News. To me that's not surprising. Look at all the fraud and "bonuses" that have been paid out as a result of the TARP money in Fall 2008. Everytime the government creates some new handout or incentive there is always lots of fraud that happens.
Personally I still have mixed emotions on extending the deadline on the tax credit. So I haven't contacted my Congressman either way. Seems like nearly 40% of the buyers in my market are paying cash. So while the tax credit has had some impact, it probably hasn't been as much as they are hyping it up to be. However at the same time I know the tax credit has knocked some buyers off the fence which is a good thing.
It will be interesting to see what happens in December if they don't extend the deadline. If you are planning on taking advantage of this, you better get a contract signed quickly because the time is running out fast.
My bet is that like the Cash For Clunkers program, Washington will allow this program to end and not revive or extend it. But who knows for sure.
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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.
407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com
We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available. Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.
Rob,
While I think it's unfair that clients needing the tax credit to buy a house and have offers in on short sales that aren't going to close in time may get left out in the cold, I do believe that the tax credit has prematurely sucked a lot of the future buyers into the market. I'm worried about the lull that may be coming, extended tax credit or not.
Rob,
I hope in 3-5 years there is not another blip ont he radar for foreclosures on folks who took advantage of the tax credit. If you cannot afford a home without the help, you cannot afford the home.
Dominick
Rob - I don't think it will be extended, which I agree with. However, the administration and I probably will disagree on why it should not be extended.
Rob,
This president only has one thing on his mind and it ain't extending the tax credit:)