Is it true that whoever buying foreclosure property will get 7000 tax credit in 2009?

The Foreclosure Prevention Act passed in the Senate 2 weeks ago. I believe it has hoops to jump before being passed into law.





http://www.senate.gov/~finance/press/Bpr...





http://www.nytimes.com/2008/04/16/busine...





I personally think it will create more problems than it fixes with regards to homeowners. The buyer's benefit by buying a foreclosed home %26amp; will receive a $7000 tax credit.





This will have extremely negative impact on home selling population as most buyers will opt to buy foreclosures rather than a home from a seller, which basically penalizes all those that were able to pay their mortgage payments.





I'd personally rather see a bill that requires lenders to restructure sub prime loans that people can no longer afford due to rate increases in ARMs which would hopefully reduce the number of foreclosures.





I haven't read enough into it if it applies to buying a home on short sale, which would in deed be a "foreclosure prevention". If so, then I applaud it.





If not, then I think the bill is inaccruately named %26amp; isn't doing anything to prevent foreclosures despite being named Foreclosure Prevention Act.

Is it true that whoever buying foreclosure property will get 7000 tax credit in 2009?
Dawni,





Do you know if this a refundable or non-wasteable tax credit or just another non refundable tax credit, which is not helpful for most people itemizing their deductions ?





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Reply:I do not think this will have hugely negative consequences for sellers of "regular homes," as foreclosed properties are generally not in the same league as non-forclosed homes. They are often in poor or very poor condition and require a greater commitment from the buyer in time and money-overall. Plus, a $7,000 tax credit is not the same as $7,000 in cash. If it helps get some of these homes out of the market, then it is good for everyone in the end. Values go up when supply goes down.

Genealogy