Housing Credit Trial Balloon?

Oh Shaun, falling under the spell of Washington now aren't we...Weren't you supposed to be the voice of reason and intelligence coming from NYC HPD? Aren't New Yorkers supposed to be smarter than that? Where are your balls????

Nothing more than the power of lobbies (real estate, developers). Absolutely no value to society, just prolonging the inevitable while adding more debt for our children to pay.

I consider myself a true democrat and am happy to pay my share in taxes, but this home-buyer tax credit has really pissed me off more than any of the bailout spending. Something about giving my tax dollars as a reward/incentive for someone who shouldn't be buying a house in the first place, while I myself am a first-time home buyer, but make too much money to qualify for the credit, yet I still can't afford a decent two-bedroom apartment in the city I live.

Anyone else furious about this too????????Lobster???Apt23????

If he worked for a private concern. He would've been fired or demoted....Here's why.
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Nevertheless, Donovan’s comments, and the press reports that followed, could well lead many a prospective home buyer to hold off on buying a home because another tax credit might be coming – which, of course, would lead to weaker than otherwise home sales, which Donovan implied might lead the administration to consider reviving the home buyer tax credit!!!!!! A few realtors and home builders have noted that a few potential buyers have already been citing the possibility of a “revival” of the tax credit as a reason for them “holding off” buying now.

The home buyer tax credit, of course, was an enormously costly and inefficient program where many home buyers who would have purchased a home anyway got a tax credit for doing so. Estimates vary, but the 2009-2010 tax credits probably will “cost” the government in terms of lost revenue somewhere in the neighbor of $26-28 billion. While to some that might not seem like “a lot,” it’s about equal to the combined SF REO carrying value of Fannie, Freddie, and FHA (the latter of which I am estimating)!!! Imagine if the government, rather than enacting yet another costly and ineffective tax credit, instead spent a fraction of the probable cost on more effective REO management, including perhaps a program to rehab and rent out such properties instead of “dumping ‘em” on the market!
http://www.calculatedriskblog.com/2010/08/lawler-hud-secretary-may-have-just-made.html

NYC10007 While I understand your frustration - it's very condescending to assume that those that collected the credit shouldn't be buying a house in the first place. Maybe you're generalizing based on NYC prices. But you know - people who can carry a mortgage in other parts of the United States could afford a home AND qualify for a tax credit which could, in fact help their situation and/or decision to buy a home vs rent.

Again - I understand your frustration - but don't stoop to being elitist to do so.

samcraig, fair-enough, that wasn't my intention...my point was more that most people who were already planning on buying, weren't going to do so BECAUSE of the credit. But many, from what I have read, stretched to buy BECAUSE the credit made it affordable. This clearly does not apply to everyone, but if $8,000 is the difference between buying a home and not, then I think it's safe to question whether or not someone should be making that stretch.

This is right up there with FHA insurance on luxury high-rises. Doesn't it make you feel good to know that your tax dollars are being put at risk so people can buy $700k Williamsburg Condos with just 3% down??? After closing costs and the prospect of paying a broker fee upon sale, you're already upside down the day you close...

I love it!