Will New Housing Initiatives Work?
Posted by: Carleton Sheets in Tax Credits, Short Sale, Recovery, Real Estate Market, Real Estate Investor, HUD, Housing Market, Foreclosure, Deed in lieu of foreclosure, Barack Obama on May 14, 2009.
As an investor, I'm excited about the new initiatives and incentives from Washington that I've been reading about the past week or so ...
- First, and most recently, the Obama administration will be announcing new measures to expand its housing program. These measures are expected to encourage lenders to accept a short sale (if offered) or a deed in lieu of foreclosure when presented, rather than going through the foreclosure process.
- HUD has permitted qualified first-time homebuyers to use the $8,000 tax credit as a down payment on a home, rather than claiming the credit on their 2009 income tax. This is a welcome change for many first-time homebuyers who lacked the funds for a down payment but were otherwise qualified to purchase a home.
The target of these initiatives and HUD's incentive is ultimately to slow the foreclosure rate with short sales and deeds in lieu of foreclosure---and to decrease the number of homes on the market by increasing the number of first-time homebuyers. As for real estate investors? Short sales can offer incredible opportunities!
Do you think Washington's initiatives will work and provide relief to lenders and distressed homeowners? Will HUD's incentive increase homeownership? Will it provide more opportunities for real estate investors?
