Home Buying in Orlando>Question Details

Orlandohomeb…, Home Buyer in Orlando, FL

Do you think that the $8,000 first time home buyer incentive program is going to be extended beyond the?

Asked by Orlandohomebuyer, Orlando, FL Mon Jul 6, 2009

November 30th date?

I wonder if the government is taking into account the lengthy short sale process that many first time home buyers are undergoing - especially in Florida!

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16
Orlandohome buyer,

I wish I had a crystal ball to find out.
I know that there have been a couple of bills proposed to both extend and change the tax credit.
For instance:
A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
and
A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.

•Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.

This info is from a USA today article from June 23rd,2009

I certainly hope it does get extended. I know the rush is on to get a home and close before the deadline.
Realtor Rick.
0 votes Thank Flag Link Sun Aug 23, 2009
Hey Im in the same position.Waiting on a shortsale to say yes or no to my offer.Which is why the government should take that into account.Where i live the homes are horrible and disgusting in my price range.This 8,000 dollar first time home buyer incentive program needs to be extended because Im not buying till I find something sweet. I dont care about that incentive it wont make me buy a home that i dont like! I plan on saving 1,000 a month till may and that will give me 9,000 Then I will buy a home .All realtors will tell you to take advantage of it now because They want to make money, but Im going to wait. I have a good feeling about them making it 15,000 and for every home buyer.If they dont then you will see no one buying homes after the deadline.Why would they if the incentive runs out?
0 votes Thank Flag Link Sun Aug 23, 2009
OrlandohomeBuyer.

Great question,regarding the shortsale process.Yes it is not getting down to the wire. With loans taking 40 days or more to close the process must be timed right if you are planning on recieving the Tax incentive.
I would recommend only looking at short sales that are lender approved,Bank-owned or non-distressed sales.
The likelyhood of an extension is there ( as lawmakers are introducing bills to do this) but do not expect an answer much before the Dec 1st dealine.
Realtor Rick.
0 votes Thank Flag Link Mon Jul 13, 2009
There is no time like the present. Don't wait to buy real estate. Buy real estate and wait. Read this article: http://www.floridarealtors.org/NewsAndEvents/n1-071009.cfm.
0 votes Thank Flag Link Fri Jul 10, 2009
At this point, you have to base your plans on the 8K credit expiring at the end of Nov, 2009. You are correct regarding short sale time frame so that must be taken into account with your strategy. Two variables are involved with short sale timeframes and those are the skill, expertise and experience of the agents involved in the short sale and of course some lenders are more efficient than others regarding timeliness.

My strategy to my buyers needing to take advantage of the 8K credit is to put the appropriate out clauses in any short sale offer and they may need to switch their focus if time gets short to non-short sale properties.

Hope that helps.

Marty Kaiser
407-595-9700
Keller Williams Realty
0 votes Thank Flag Link Wed Jul 8, 2009
There has been talk that they may extend it but I wouldn't take that chance. I feel that prices have hit rock bottom and may start slowly climbing up. Please take advantage of the tax credit NOW while you know it is a sure thing.
Sincerely,
Julie Wright
Bette Butz Realty, Inc.
407-616-5132
jwright68@cfl.rr.com
0 votes Thank Flag Link Tue Jul 7, 2009
No one knows what the government may do. If I were a 1st time buyer, I would find a home to buy ASAP to meet the 11/1/09 deadline. This is a great time for you to buy with interest rates still at historical lows & houses at extremely favorable listing prices (with room for negotiation).

I highly suggest that you retain a Buyer's Agent to assist you with your purchase.
0 votes Thank Flag Link Tue Jul 7, 2009
It is hard to know whether it will be extended or not. Best is to buy now to be in your house before December 09
Jean-Pierre Angel
Exclusive Buyer Agent in the Greater Boston area for the last 15 years
RealEstate.com REALTORS
angeljp@aol.com
617-924-9136
cell: 617-230-7045
FAX: 617-393-1664
0 votes Thank Flag Link Tue Jul 7, 2009
It's hard to know what the government will do with regards to the $8,000 tax credit for first time home buyers. They could extend it into 2010, but that's a chance right now. This is a awesome time to purchase right now in Central Florida. Short sales are a lengthy process and can be very frustrating for all parties concerned.

If you need help and are not working with another agent please give me a call.

Maggie DeGennaro
407-929-1384
http://www.callmaggietoday.com
0 votes Thank Flag Link Tue Jul 7, 2009
Dear OrlandoHB

Short sales are not "short" as you pointed out. Time is running out on the Tax Credit. Do not count on it to be extended you may miss out and get out there and find a Bank Owned property that can be closed within 45-60 days. That is the short answer! Let me know if I can help!

Gay Middleton
Realtor**Moving You in the Right Direction
gaymiddleton@orlandohomeresales.com
Web Reference: http://www.gaymiddleton.com
0 votes Thank Flag Link Tue Jul 7, 2009
Orlando.

Our recommendation, for current home buyers, is to take advantage of the opportunity as it exists today..... It could be a major mistake to plan on this government program or any other government program to be extended beyond its defined term of existance.

"Strike while the iron is hot,"
0 votes Thank Flag Link Mon Jul 6, 2009
I have to agree with Don Tepper's response to your question. If you have an offer on a short sale, I would direct your real estate agent to continue searching for a home that meets your needs that is not a short sale.

My opinion is, don't count on the $8,000 dollar incentive to be extended. Find a home and close by November 30th.

My contact number and website is listed below for further assistance.

Sincerely,


Jimmy Williams
Coldwell Banker Tyre & Taylor Realty, Inc.
2765 South Bay Street
Eustis, Fl 32726
capstonejw@hotmail.com
Web Reference: http://www.jimewilliams.com
0 votes Thank Flag Link Mon Jul 6, 2009
Dear Orlando Homebuyer,
I certainly hope so! But on that same note, I don't think I would delay a purchase now based on the fact that "they may extend it". Yes there has been talk of an extension. There has also been talk of offering the credit to ALL HOMEBUYERS. And yes, there has beenTALK of increasing the tax credit to $15,000. Talk is just that. Talk! For a sure thing, act now, and also consider that the approval time required for short sales
may lead you to the end of the line with no tax credit.
0 votes Thank Flag Link Mon Jul 6, 2009
I hope so. It seems to have caught a lot of first time home buyers off guard. They (the first time home buyer) hadn't really thought of it before, so now they are very busy gathering up their 3.5% down payments and checking on how to get out of their leases...I, for one, am keeping my fingers crossed. It is stimulating our Charlotte market.
Web Reference: http://www.homesbycross.com
0 votes Thank Flag Link Mon Jul 6, 2009
Hey don't fret. The government is always looking at ways to "stimulate" the economy. Word's going around that the $8000 tax credit will be increased to $15,000 to everyone, not just first time home buyer's. Why? Because most first time homebuyer's aren't qualifying for loans. Even though FHA is making it easier for people to get loans, the banks aren't taking any chances and their guidelines are tough. Yes, you can get a loan with scores as low as 530. But who has 25% to put down? 580? Yes. But who's going to take the chance on the borrower who has credit like that who is most likely to have a first payment default? So, it will be a game of Roll the Dice. Want to wait to buy next year and tax your chance it may be there? Go for it.
0 votes Thank Flag Link Mon Jul 6, 2009
Maybe, but I doubt it. A couple of reasons:

First, the $8,000 tax credit was designed to increase purchasing activity in starter/lower-priced homes. And to support that end of the market. In many areas, that end of the market is now red-hot. There are still many depressed areas, and the market for more expensive homes is still soft. But in some areas--such as Northern Virginia--lower-priced starter homes are being snatched up for full price in just a few days. So, the question is: When Congress considers whether to extend the tax credit, will there be enough of a broad-based need to generate the votes required to pass the bill? Maybe, but . . .

Second, there's rapidly growing concern over the size of the U.S. budget deficit. With all the stimulus packages, the bail-out bills, initiatives such as health care reform, etc., it's becoming more and more difficult to pass legislation that adds to the budget deficit. So, if low-end housing isn't an urgent, pressing issue in the fall, I expect that Congress will be reluctant to extend the credit.

And finally there are plenty of houses for first-time buyers to buy. Why focus on short sales? In fact, of all the different ways to go (regular purchases, REOs, and short sales), short sales are the most tricky, difficult, unpredictable, and time-consuming. If I were in Congress, I wouldn't take that into account. I'd say: The buyers have had a whole year to buy. They can buy all sorts of properties. And even if they're interested in short sales, those usually take a few months. If a first-time buyer had wanted to buy, there was ample opportunity. Jumping in relatively late in the cycle and trying to close a deal on a short sale was a decision the buyer made. We gave them a chance.

Look: If you want to buy, then buy. Assume that the tax credit won't be extended.

Hope that helps.
0 votes Thank Flag Link Mon Jul 6, 2009
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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