Hope Tax Credit 2008
July 9th, 2010
Question: Why is the first time homebuyer 2008 tax credit limited to purchases after April?
My hubby and I purchased our first home on February 11, 2008. In the past year we have incurred many cost associated with maintaining/owning a home and were hoping the new tax credit ($7500 loan) would benefit us. Not so because it is limited to those purchased after April 8, 2008 – why? Meanwhile our home value has diminished by 15k and we are really not seeing any added benefits to being a homeowner. Perhaps we should skip out on our mortgage, go into foreclosure, maybe the bailout will help save us then! While we are at it, we’ll file for bankruptcy and let the burden of our irresponsible behavior be left to the tax payers. Why does being a honest responsible American never pay off?
Answer: The simple answer is that the tax credit was passed in April and it was intended to stimulate more activity in the housing market. Making it retro-active would do nothing to entice buyers, so they made it effective as of the date it was passed.
I feel your pain. I bought my first house in September 2007 and I don’t even want to know what its worth right now.
While you could possibly get some sort of relief if you went into default, I don’t think its the best option.
The fundamental problem is that you see your house as an investment that should always be going up, and as soon as it goes down, you get worried. The fact is that your house is a place to live. If it makes you some money, then that’s nice, but that’s not the purpose of buying a house. You still have the house you agreed to buy, your mortgage payment should be the same, so there’s nothing to complain about. Keep making your payments and keep living in your house. If you’re viewing your house as an investment, then ride out the wave and wait for things to recover, have the same long-term focus that you should have with any investment.
When Will Houses Appreciate? Not Until Supply Bloat Clears
The supply of homes for sale threatens to back up due to expiration of a federal tax credit for homebuyers. That could push out the day that homeowners will see properties consistently appreciate again. And it could further dash homebuilding.
Mission of Hope Christmas Drive 2008
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