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Old 03-25-2009, 04:50 AM
 
Location: Unperson Everyman Land
30,482 posts, read 20,126,631 times
Reputation: 8392

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In this era of ubiquitous bailouts, the public discussion seems to overlook the nine out of 10 of homeowners who are paying their mortgages on time. While the proposals put forth by the Obama administration throw enormous sums of good taxpayer money at those who have engaged in irresponsible or even fraudulent behavior, unfairly left out in the cold are the vast majority of Americans who have behaved responsibly. As House Republicans roll out our alternative housing plan today, we do not make that same mistake.

We believe our plan is the most effective way to stimulate home-buying and arrest the free fall in home values that has erased roughly $20 trillion in housing wealth since the market peaked in mid-2007. What distinguishes our program is the emphasis on fairness.

Unlike the administration’s plan, we do not offer help to borrowers who inaccurately represented their income or assets on their original mortgage. Likewise, there is no assistance for lenders who followed improper lending standards and made loans to people who could not afford them.

Instead, the GOP plan gives incentives to all responsible Americans who want to buy a new home or refinance at a lower rate. This includes homeowners who find themselves temporarily unemployed; “neighborhood investors” who would purchase and rent out homes in areas with a high number of foreclosures; growing families who want to trade up to a larger home; empty-nesters seeking to downsize; and families who wish to relocate to a new area.

Republicans are determined to break the deflationary habit of prospective homebuyers and private capital merely waiting on the sidelines for things to get worse. The scaled-down $8,000 tax credit for first-time homebuyers in the recent stimulus bill doesn’t go far enough to tip the balance in favor of buying.

To spur home purchases across the board, we propose:

• A $15,000 home-buyers tax credit for all purchases of primary residences provided that the buyer pays 5 percent down. Boosted by historically low mortgage rates, this tax credit provides the right incentives to get all kinds of capable homebuyers back into the game – not just first-timers. The credit covers purchases made before July 1, 2010.

We also believe we can put a dent in the housing inventory glut by encouraging neighborhood investors. Current law provides incentives only for the purchase of owner-occupied homes. To encourage neighborhood investors to buy and rent out these homes rather than leaving them empty eyesores that further drag down home values in the area, House Republicans propose:

• An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.

On the refinancing side, House Republicans plan to help keep people in their homes by proposing the following:

• A $5,000 refinancing tax credit to help families handle the cost of mortgage refinancing, buy down points or reduce their principal balance. Refinancing would be covered through July 1, 2010.

• Incentives for lenders to keep owners in their homes by refinancing mortgages and lowering monthly payments. If the homeowner agrees to share a portion of future home appreciation with the lender, both lender and borrower will be exempted from taxes on eventual profits. Nor will the borrower incur any tax liability as a result of the refinancing. This applies to refinancing through July 1, 2010.

The latter incentive instills a sense of shared sacrifice between borrower and lender. That’s a far cry from the administration’s plan for the government to step in foot the bill to modify the mortgages.

The housing crisis remains at the vortex of the current economic storm. We have to focus our efforts on stabilizing home prices and repairing the disparity between sellers and buyers.

These alternative solutions are House Republicans’ best way to reconcile two critical demands - taking swift and bold action in the face of a national crisis, and instead of rewarding bad or irresponsible behavior, rewarding the great majority of responsible homeowners.

President Obama says he values bipartisanship. By putting forward these constructive solutions to our nation’s most urgent problem, we are holding the door open for him.

It’s now up to him to walk through it.

Eric Cantor : GOP Housing Plan is About Fairness - Townhall.com
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Old 03-25-2009, 02:14 PM
 
706 posts, read 901,686 times
Reputation: 134
[quote=momonkey;8039887]this is a good start now both parties need to come to the middle. Both plans no matter what are flawed.

To spur home purchases across the board, we propose:

• A $15,000 home-buyers tax credit for all purchases of primary residences provided that the buyer pays 5 percent down. Boosted by historically low mortgage rates, this tax credit provides the right incentives to get all kinds of capable homebuyers back into the game – not just first-timers. The credit covers purchases made before July 1, 2010.
capable buyers, this would put us back to the haves and have not. With the foreclosures currently out there today as well as the homes that are just sitting empty for years. The FHA loans were typically 3% down, now their expecting a homeowner to come up with 5% in order to obtain a tax credit. So if someone with a good job and good credit was in an area where the median prices start at $200K in order to receive credit they will need to fork over $10K. So in essence that person will recieve a $5K credit. Benefit to some, but not all.

We also believe we can put a dent in the housing inventory glut by encouraging neighborhood investors. Current law provides incentives only for the purchase of owner-occupied homes. To encourage neighborhood investors to buy and rent out these homes rather than leaving them empty eyesores that further drag down home values in the area, House Republicans propose:
Most towns have their own laws on the books that if a home is an "eyesore" torn down and abandoned after a certain time, the city will begin court proceedings to take ownership and auction it off to an investor. Not sure about all towns, but there are quite a few in New Jersey that already have these types of laws as well as incentives on the books.

• An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.
I'm not clear on this one.

On the refinancing side, House Republicans plan to help keep people in their homes by proposing the following:

• A $5,000 refinancing tax credit to help families handle the cost of mortgage refinancing, buy down points or reduce their principal balance. Refinancing would be covered through July 1, 2010.
so this will buy down one point. Obama's plan included the requirement that the home owner had to pay PMI for 10 years. This ensures that the banks were covered in the event that the homeowner fell into the danger zone again. It doesn't appear that the Republican version included this as well.

• Incentives for lenders to keep owners in their homes by refinancing mortgages and lowering monthly payments. If the homeowner agrees to share a portion of future home appreciation with the lender, both lender and borrower will be exempted from taxes on eventual profits. Nor will the borrower incur any tax liability as a result of the refinancing. This applies to refinancing through July 1, 2010.
It appears with this option that the same companies that received a bailout will be in a win win situation here. Not only will they gain from the home appreciation, buth they will also receive a tax incentive to refinance a homeowners mortgage. Don't quite see how we're getting away from lining these banks pockets.
The latter incentive instills a sense of shared sacrifice between borrower and lender. That’s a far cry from the administration’s plan for the government to step in foot the bill to modify the mortgages.

The housing crisis remains at the vortex of the current economic storm. We have to focus our efforts on stabilizing home prices and repairing the disparity between sellers and buyers.

Before anyone chimes in with indignant comments again i said this is a start, but i believe bipartisan work is needed from both sides. The other problem is Cantor did not indicate how much this was going to cost the tax payers. They had not calculated the figures yet.
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Old 03-26-2009, 01:12 AM
 
Location: Unperson Everyman Land
30,482 posts, read 20,126,631 times
Reputation: 8392
[quote=proudmama;8040499]
Quote:
Originally Posted by momonkey View Post
this is a good start now both parties need to come to the middle. Both plans no matter what are flawed.

To spur home purchases across the board, we propose:

• A $15,000 home-buyers tax credit for all purchases of primary residences provided that the buyer pays 5 percent down. Boosted by historically low mortgage rates, this tax credit provides the right incentives to get all kinds of capable homebuyers back into the game – not just first-timers. The credit covers purchases made before July 1, 2010.
capable buyers, this would put us back to the haves and have not. With the foreclosures currently out there today as well as the homes that are just sitting empty for years. The FHA loans were typically 3% down, now their expecting a homeowner to come up with 5% in order to obtain a tax credit. So if someone with a good job and good credit was in an area where the median prices start at $200K in order to receive credit they will need to fork over $10K. So in essence that person will recieve a $5K credit. Benefit to some, but not all.

We also believe we can put a dent in the housing inventory glut by encouraging neighborhood investors. Current law provides incentives only for the purchase of owner-occupied homes. To encourage neighborhood investors to buy and rent out these homes rather than leaving them empty eyesores that further drag down home values in the area, House Republicans propose:
Most towns have their own laws on the books that if a home is an "eyesore" torn down and abandoned after a certain time, the city will begin court proceedings to take ownership and auction it off to an investor. Not sure about all towns, but there are quite a few in New Jersey that already have these types of laws as well as incentives on the books.

• An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.
I'm not clear on this one.

On the refinancing side, House Republicans plan to help keep people in their homes by proposing the following:

• A $5,000 refinancing tax credit to help families handle the cost of mortgage refinancing, buy down points or reduce their principal balance. Refinancing would be covered through July 1, 2010.
so this will buy down one point. Obama's plan included the requirement that the home owner had to pay PMI for 10 years. This ensures that the banks were covered in the event that the homeowner fell into the danger zone again. It doesn't appear that the Republican version included this as well.

• Incentives for lenders to keep owners in their homes by refinancing mortgages and lowering monthly payments. If the homeowner agrees to share a portion of future home appreciation with the lender, both lender and borrower will be exempted from taxes on eventual profits. Nor will the borrower incur any tax liability as a result of the refinancing. This applies to refinancing through July 1, 2010.
It appears with this option that the same companies that received a bailout will be in a win win situation here. Not only will they gain from the home appreciation, buth they will also receive a tax incentive to refinance a homeowners mortgage. Don't quite see how we're getting away from lining these banks pockets.
The latter incentive instills a sense of shared sacrifice between borrower and lender. That’s a far cry from the administration’s plan for the government to step in foot the bill to modify the mortgages.

The housing crisis remains at the vortex of the current economic storm. We have to focus our efforts on stabilizing home prices and repairing the disparity between sellers and buyers.

Before anyone chimes in with indignant comments again i said this is a start, but i believe bipartisan work is needed from both sides. The other problem is Cantor did not indicate how much this was going to cost the tax payers. They had not calculated the figures yet.

I agree that both sides could create a much better situation if they would take the best of both approaches. I like the incentives for investors to come in and directly invest in the properties as rentals. I'm in Michigan and we've been getting hit for about five years now. My neighbor just lost his house which means I'll have an empty house next to mine and you know what that does to my home's value. It would be great if someone purchased the home and rented it out until real buyers come back. Of course these are all band aids. The real problem is we don't earn the wages we used to. If we did, the demand for houses would still be high. Nothing will get better until that happens.
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Old 03-26-2009, 01:25 AM
 
4,455 posts, read 3,597,487 times
Reputation: 648
Quote:
Originally Posted by momonkey View Post
In this era of ubiquitous bailouts, the public discussion seems to overlook the nine out of 10 of homeowners who are paying their mortgages on time. While the proposals put forth by the Obama administration throw enormous sums of good taxpayer money at those who have engaged in irresponsible or even fraudulent behavior, unfairly left out in the cold are the vast majority of Americans who have behaved responsibly. As House Republicans roll out our alternative housing plan today, we do not make that same mistake.

We believe our plan is the most effective way to stimulate home-buying and arrest the free fall in home values that has erased roughly $20 trillion in housing wealth since the market peaked in mid-2007. What distinguishes our program is the emphasis on fairness.

Unlike the administration’s plan, we do not offer help to borrowers who inaccurately represented their income or assets on their original mortgage. Likewise, there is no assistance for lenders who followed improper lending standards and made loans to people who could not afford them.

Instead, the GOP plan gives incentives to all responsible Americans who want to buy a new home or refinance at a lower rate. This includes homeowners who find themselves temporarily unemployed; “neighborhood investors” who would purchase and rent out homes in areas with a high number of foreclosures; growing families who want to trade up to a larger home; empty-nesters seeking to downsize; and families who wish to relocate to a new area.

Republicans are determined to break the deflationary habit of prospective homebuyers and private capital merely waiting on the sidelines for things to get worse. The scaled-down $8,000 tax credit for first-time homebuyers in the recent stimulus bill doesn’t go far enough to tip the balance in favor of buying.

To spur home purchases across the board, we propose:

• A $15,000 home-buyers tax credit for all purchases of primary residences provided that the buyer pays 5 percent down. Boosted by historically low mortgage rates, this tax credit provides the right incentives to get all kinds of capable homebuyers back into the game – not just first-timers. The credit covers purchases made before July 1, 2010.

We also believe we can put a dent in the housing inventory glut by encouraging neighborhood investors. Current law provides incentives only for the purchase of owner-occupied homes. To encourage neighborhood investors to buy and rent out these homes rather than leaving them empty eyesores that further drag down home values in the area, House Republicans propose:

• An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.

On the refinancing side, House Republicans plan to help keep people in their homes by proposing the following:

• A $5,000 refinancing tax credit to help families handle the cost of mortgage refinancing, buy down points or reduce their principal balance. Refinancing would be covered through July 1, 2010.

• Incentives for lenders to keep owners in their homes by refinancing mortgages and lowering monthly payments. If the homeowner agrees to share a portion of future home appreciation with the lender, both lender and borrower will be exempted from taxes on eventual profits. Nor will the borrower incur any tax liability as a result of the refinancing. This applies to refinancing through July 1, 2010.

The latter incentive instills a sense of shared sacrifice between borrower and lender. That’s a far cry from the administration’s plan for the government to step in foot the bill to modify the mortgages.

The housing crisis remains at the vortex of the current economic storm. We have to focus our efforts on stabilizing home prices and repairing the disparity between sellers and buyers.

These alternative solutions are House Republicans’ best way to reconcile two critical demands - taking swift and bold action in the face of a national crisis, and instead of rewarding bad or irresponsible behavior, rewarding the great majority of responsible homeowners.

President Obama says he values bipartisanship. By putting forward these constructive solutions to our nation’s most urgent problem, we are holding the door open for him.

It’s now up to him to walk through it.

Eric Cantor : GOP Housing Plan is About Fairness - Townhall.com
You lost...

Last edited by dukester.2; 03-26-2009 at 01:47 AM..
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Old 03-26-2009, 01:30 AM
 
Location: San Antonio, TX
1,030 posts, read 1,287,778 times
Reputation: 244
It makes too much sense to expect a down payment!!!
We should be given these houses for free!
I actually agree with most of this plan because it is not a get out of jail free card for people that bought more house than they could afford.
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Old 03-26-2009, 09:56 AM
 
706 posts, read 901,686 times
Reputation: 134
Quote:
Originally Posted by nrfitchett4 View Post
It makes too much sense to expect a down payment!!!
We should be given these houses for free!
I actually agree with most of this plan because it is not a get out of jail free card for people that bought more house than they could afford.

how is requiring 5% down going to minimize the inventory? There is a middle here, both sides need to work it out.
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Old 03-29-2009, 08:46 PM
 
Location: Wisconsin
20,372 posts, read 13,893,246 times
Reputation: 5239
Quote:
Originally Posted by momonkey View Post
In this era of ubiquitous bailouts, the public discussion seems to overlook the nine out of 10 of homeowners who are paying their mortgages on time. While the proposals put forth by the Obama administration throw enormous sums of good taxpayer money at those who have engaged in irresponsible or even fraudulent behavior, unfairly left out in the cold are the vast majority of Americans who have behaved responsibly. As House Republicans roll out our alternative housing plan today, we do not make that same mistake.

We believe our plan is the most effective way to stimulate home-buying and arrest the free fall in home values that has erased roughly $20 trillion in housing wealth since the market peaked in mid-2007. What distinguishes our program is the emphasis on fairness.

Unlike the administration’s plan, we do not offer help to borrowers who inaccurately represented their income or assets on their original mortgage. Likewise, there is no assistance for lenders who followed improper lending standards and made loans to people who could not afford them.

Instead, the GOP plan gives incentives to all responsible Americans who want to buy a new home or refinance at a lower rate. This includes homeowners who find themselves temporarily unemployed; “neighborhood investors” who would purchase and rent out homes in areas with a high number of foreclosures; growing families who want to trade up to a larger home; empty-nesters seeking to downsize; and families who wish to relocate to a new area.

Republicans are determined to break the deflationary habit of prospective homebuyers and private capital merely waiting on the sidelines for things to get worse. The scaled-down $8,000 tax credit for first-time homebuyers in the recent stimulus bill doesn’t go far enough to tip the balance in favor of buying.

To spur home purchases across the board, we propose:

• A $15,000 home-buyers tax credit for all purchases of primary residences provided that the buyer pays 5 percent down. Boosted by historically low mortgage rates, this tax credit provides the right incentives to get all kinds of capable homebuyers back into the game – not just first-timers. The credit covers purchases made before July 1, 2010.

We also believe we can put a dent in the housing inventory glut by encouraging neighborhood investors. Current law provides incentives only for the purchase of owner-occupied homes. To encourage neighborhood investors to buy and rent out these homes rather than leaving them empty eyesores that further drag down home values in the area, House Republicans propose:

• An equalizing of the treatment of a home purchased for occupancy with a home purchased for rental purposes (defined as being rented to the same tenant for at least 181 days out of the year). The same exclusion from taxes for any future appreciation in the home value applies. This covers purchases made before July 1, 2010.

On the refinancing side, House Republicans plan to help keep people in their homes by proposing the following:

• A $5,000 refinancing tax credit to help families handle the cost of mortgage refinancing, buy down points or reduce their principal balance. Refinancing would be covered through July 1, 2010.

• Incentives for lenders to keep owners in their homes by refinancing mortgages and lowering monthly payments. If the homeowner agrees to share a portion of future home appreciation with the lender, both lender and borrower will be exempted from taxes on eventual profits. Nor will the borrower incur any tax liability as a result of the refinancing. This applies to refinancing through July 1, 2010.

The latter incentive instills a sense of shared sacrifice between borrower and lender. That’s a far cry from the administration’s plan for the government to step in foot the bill to modify the mortgages.

The housing crisis remains at the vortex of the current economic storm. We have to focus our efforts on stabilizing home prices and repairing the disparity between sellers and buyers.

These alternative solutions are House Republicans’ best way to reconcile two critical demands - taking swift and bold action in the face of a national crisis, and instead of rewarding bad or irresponsible behavior, rewarding the great majority of responsible homeowners.

President Obama says he values bipartisanship. By putting forward these constructive solutions to our nation’s most urgent problem, we are holding the door open for him.

It’s now up to him to walk through it.

Eric Cantor : GOP Housing Plan is About Fairness - Townhall.com
The problem is, any time the government gets involved it messes things up. Even "a $15,000 home-buyers tax credit" will just be an incentive for the seller to jack the prices up by about $15,000, since the government is artificially inflating home prices. Or an incentive for people to buy/flip homes, buy grabbing the $15,000 tax credit.

You have to write the laws in such a way, that the only person who can benefit from them are the intended recipients, and make sure the law will not be twisted around for the benefit people who engage in fraud, or scams. The refinance credit you mentioned, might actually work, because no one but the person refinancing will know that they have access to the tax credit.

They could also allow people to claim more tax credit for their mortgage come tax time.
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Old 03-29-2009, 08:55 PM
 
Location: Raleigh, NC
9,043 posts, read 11,604,429 times
Reputation: 1392
Quote:
Originally Posted by proudmama View Post
how is requiring 5% down going to minimize the inventory? There is a middle here, both sides need to work it out.
Middle ground = no down payment?

Nope.
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Old 03-29-2009, 08:58 PM
 
7,352 posts, read 9,204,186 times
Reputation: 1881
It doesn't matter, because these ideas are far from "great." As usual, the Republicans have come up with a "plan" that doesn't help anybody whose lost their home or is on the verge of losing their home. It only helps those who don't need the help.

Next.
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Old 03-29-2009, 09:08 PM
 
13,180 posts, read 13,090,722 times
Reputation: 4533
I've got to hand it to you...a perfect example of short sighted Republican ideas....LOL

What's their answer???? Build and sell more houses to one another!!!! Like we don't have an oversupply now?

Forget investing in infrastructure, forget trying to revive our exports via high tech manufacturing, forget more education, forget research and developement funding...

Afterall....those things actually build a Nation's wealth.....lets just build more cheap houses and fill them with Chinese imports..

What a prime example of how foolish Republicans are!....Always looking for the easy way out...Never any sense of self sacrifice.

Last edited by padcrasher; 03-29-2009 at 09:18 PM..
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