Homebuyer’s Tax Credit On The Road To Extension

6 Responses to “Homebuyer’s Tax Credit On The Road To Extension”

1. idgaf writes
   October 29th, 2009 6:18 am

   That money will reduce tax revenue and will have to be made up by taxpayers. Why should they help buy houses for others and get the banks off the hook? Its just more bailout money by a different name/method.

   The government is the problem not the solution and are repeating the same mistakes over and over again.

   Let prices fall and houses will become 8K or more less and do the same thing without selling our heirs into financial slavery.

   Spending money you/they don’t have is insanity.

2. TNVolunteer73 writes
   October 29th, 2009 7:06 am

   The Tax Credit for homebuyers is to another bailout to the bank, the 8000 does not go to the individual it is given to the mortgage lender (bank).

   This over inflates housing prices, this caused buyers to buy homes they could not afford, once the credit has expired home prices will drop, leaving those that over extened themselves to be bankrupt and another round of forclosers, another bank bailout.

   And the middle class will be stuck holding the paying via taxes. Or we just add more to our RECORD DEMOCRAT DEFICT.

3. The Prof writes
   October 29th, 2009 8:41 am

   TNVolunteer73 writes:
   The Tax Credit for homebuyers is to another bailout to the bank, the 8000 does not go to the individual it is given to the mortgage lender (bank).

   This is actually incorrect. The tax credit is refundable to the tax payer. The tax payer files form 5405 with either their 1040 or a 1040x. If the tax payer then wants to pay the mortgage company that credit then that is their prerogative.

4. TNVolunteer73 writes
   October 29th, 2009 9:13 am

   Prof.. it is a bailout for the Bank…

   Prof. does not understand economics..

   1. the Homeowner used it for a down payment (It goes directly to the bank intrest free)

   2. The Homeowner keeps the $8000, and borrows $8000 MORE from the bank in the mortgage, and pays the 8,000 to the bank over a period of 3 years (Average time to pay 8000 in principle on a 30 year mortgage) WITH INTREST.

   The $8000 goes to the Bank, the home owner gets to decide do they pay the bank now and SAVE THE INTREST payments, or pay the later with intrest.

5. Sidney writes
   October 29th, 2009 10:18 am

   This is actually incorrect. The tax credit is refundable to the tax payer. The tax payer files form 5405 with either their 1040 or a 1040x. If the tax payer then wants to pay the mortgage company that credit then that is their prerogative.

   Well no matter which way you call it, Prof, we, the American taxpayer are paying for it. Now GM, aka fed govt, wants another bail out. Hey what the hell? Why don’t we just give everyone a car, a house and $100,000? Everyone. Legals, illegals, law abiding citizens, criminals, babies, old people. Then when everyone has the “dream” let’s do a survey next year at the same timee to see how many squandered their wind fall.

   The government is as stupid as the people running it. Oh, that’s right. People voted in the stupid gov’ment. Darn. I thought it was so simple.

6. TNVolunteer73 writes
   October 29th, 2009 10:39 am

   Sidney

   In reality it is not.

   The Tax Credit is to the bank,

   It is the Consumers choice to borrow $8000 from the bank and keep the $8000 tax credit.

   Or put the Tax Credit into the down payment to the Bank to pay for closing costs Points ect..

   So no matter how it is distributed, the $8000 goes to the bank one way or another.

   there are only 2 items on a ledger, Credits and Debts… It may be a short term Credit, but it is paid to the at time of purchase or at a later date.

   The only time that would not be the case would be when the buy pays CASH payment in Full for the property..

   Now how may first time homebuyers pay 100% down.