President Obama signs home buyer tax credit bill!

NAR has informed us that President Obama just signed the legislation containing the home buyer tax credit extension and expansion!
Here's information from OAR Chief Executive Officer Don Freels on this good news:

President Obama today signed the Federal Homebuyer Tax
Credit Extension and Expansion legislation into law. Therefore, the effective
date of the legislation is today, Nov. 6, 2009.
The most common question we are getting from members
around the state is whether transactions which are already in the pipeline, but
not yet closed, will qualify for the the $6,500 tax credit now available to
buyers who are not first-time buyers, but have lived in their homes at least 5
of the preceding 8 years. The answer we have received from the NAR Washington
office is "yes," those purchasers qualify for the tax credit as long as the date
of closing is today or later.
Here is a link to NAR President Charles McMillan's podcast on this
subject.
This legislative victory is the result of your efforts in
responding to the Calls-for-Action sent by NAR. This is a victory for consumers
and REALTORS alike. It would not have occurred without the REALTOR
organization.

Tax credit extension a positive step toward sustained real estate recovery

OAR just issued the following press release regarding the home buyer tax credit....

The Ohio Association of REALTORS commends the U.S. Senate and
House of Representatives for passing a bill this week that includes an extension
and expansion of the current home buyer tax credit as an important step in
ensuring a real estate and economic recovery.
"REALTORS appreciate the swift action by Congress to extend the home
buyer tax credit and expand it to come current homeowners," said OAR President
Jonathan M. Hall. "As the leading advocate of housing and real estate issues in
Ohio, OAR urges President Obama to sign this legislation into law quickly to
keep the momentum going in the fragile recovery of the housing market in Ohio
and throughout the nation."

To read the full release click here.

We're getting closer

Progress...on the Housing Tax Credit front. From the New York Times: Congress Poised to Keep Homebuyers' Tax Credit

The Senate and House are poised to agree on a compromise
measure to extend unemployment benefits that also would expand a popular $8,000
tax credit for homebuyers, despite a recent government report on extensive
mistakes and suspected fraud in the program.

According to the Times article, the homebuyers' credit -- set to expire on Nov. 30 -- would be extended to cover homes under contract by April 30.

Also, it no longer would be limited to first-time buyers;
people who have owned a home for at least five years could get a $6,500 credit
on a new residence. Income limits for eligibility would be raised, making many
more people qualify.
Extending and expanding the credit would cost an estimated
$11 billion, on top of the $10 billion spent so far. It would be a big victory
for the housing and real estate lobby...

It's not too late to make your lawmaker know your thoughts!

Define 'perilous'...

From Bloomberg: Real Estate Price Plunge Makes U.S. Homeownership Perilous Path

Kajal and Vishal Dharod paid $559,000 in 2006 for a new
four-bedroom house built in Rancho Cucamonga, Calif. Today, it's worth about
$360,000.
"We don't know how we can come back from a loss like
that," said Kajal Dharod, 29, a first-time homeowner with a $4,200-a-month
mortgage. "Buying the house was a mistake."
American homeownership, once considered a path to wealth,
is now leading to disillusionment.

Yep...stories like this are hard to overcome. Compounding to the negativity is a reference in the article citing the president of a New York-based economic forecasting firm that includes Cleveland and Columbus among the 10 cities where real estate prospects are the worst.

Agreement...but

OK...so leaders of both parties, key Senate Finance Committee members and staff have reached an agreement on the extending and expanding the housing tax credit as we reported last night.
Here comes the "but" from NAR's public policy staff...

However, there is no agreement on how to attach this tax
credit to the pending Unemployment Insurance bill, or whether to offer the tax
credit agreement on another bill, or whether to bring the agreement to the
Senate floor and vote upon it as a separate, stand alone bill.
And after Senate action, the tax credit must go to the
House of Representatives for action.

In other words...there's a lot of work to do in order to keep the housing recovery on track. If you haven't made your voice heard -- click here -- and let your lawmaker know how important this is!

BREAKING REPORT... Senate reaches deal on home tax credit extension & expansion!

Great news... Marketwatch.com is reporting that the U.S. Senate has reached agreement on a deal to extend the popular tax credit for home buyers -- even expanding it beyond first-time buyers.

According to the report, Senate Majority Leader Harry Reid's office announced that the tax credit will be extended through the end of April. In addition to the $8,000 tax credit for first-time buyers, the new deal will be expanded to include those who have lived in their home for five consecutive years in the eight years leading up to the date of settlement. For step-up buyers the credit will be $6,500.

The income threshold is expected to be $125,000 for individuals and $225,000 for joint filers (an increase from the current $75,000/$150,000 limits).

Foreclosure fix facing growing demands

Elizabeth Warren of the Congressional Oversight Committee appeared on CNN Money and offered a rather blunt assessment of the effort to help homeowners facing foreclosure. Through the first six months only $500,000 loans were modified.

"We're bailing out the boat but it's taking on water even
faster. Even when (the Making Home Affordable Program) is fully up, foreclosures will out run modifications at a rate of 2-to-1. The hole in the bottom of the boat is just bigger than this program."