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U.S. Senate Passes Bill To Rescue Battered Housing Market

April 10th, 2008 7:37 PM by Uletas Greene Carter

The U.S. Senate made its most aggressive effort yet to address the collapsing housing market, passing a combination of tax breaks and funding intended to help homebuilders and struggling borrowers.

These are my favorite parts of the bill:

--Large tax breaks for homebuilders and a $7,000 tax credit, spread out over two years, for people who buy foreclosed properties.

--$500 or $1,000 property tax reduction to homeowners who do not itemize their tax returns.

--States would be authorized to issue $100 billion in tax-free bonds to help refinance troubled borrowers.

-- increase in the size of loans FHA can insure to $550,000, while also increasing the down payment borrowers must provide to 3.5%

-- $4 billion in grants for local entities to purchase and maintain foreclosed properties.

-- $180 million for counseling and legal services for at-risk borrower.

The House is pushing forward with its own housing stimulus proposals, including a package of tax credits for first-time home buyers, increased assistance for low-income rental housing, and a more modest property tax deduction. Financial Services Chairman Barney Frank D-Mass., is also pushing a plan to use the Federal Housing Administration to guarantee up to $300 billion in loans to help refinance at-risk loans.

If you are thinking of buying, selling or refinancing property, please call me today for a free, no-obligation consultation.  213-804-3369.


Posted in:General
Posted by Uletas Greene Carter on April 10th, 2008 7:37 PM



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