Foreclosure Bill Has Some Good Ideas To Help Housing Market

Posted in Michigan Foreclosures by Michigan Real Estate Expert on April 27th, 2008

I am a RE/MAX agent in Birmingham, Michigan. I primarily represent home buyers and sellers in the North Woodward Area of Oakland County, Southeast Michigan. Currently, approximately one of every two sales in Oakland County, Michigan is a bank owned home. Of course, this has caused huge downward pressure on home values and has perpetuated our buyer’s market. A bill currently before the United States House of  Representatives has some provisions that I believe would help. First, the bill provides for a $7.000 tax credit for those buying bank owned homes and would provide $4 billion in grants for communities to buy and fix up foreclosed homes. The naysayers in the house contend that this would unfairly award purchasers who would have bought anyway and would devalue other homes. In addition, the naysayers think that this would encourage banks to foreclose on more homeowners. I believe that the bill’s detractors are misguided. First, these measures would help reduce the huge inventory of bank owned homes and, in turn, would help get supply to meet current demand. This will help home values not hurt them. The bill also includes the issuance of $10 billiion in tax free mortgage revenue bonds to help homeowners refinance subprime loans. This part of the bill has white house support and would naturally result in fewer foreclosure. All combined, these measures should help reduce the glut of bank owned homes on the market much faster than would occur otherwise.

Ready to buy Southeast Michigan real estate?  I can help you find and buy the right home for you at the best price and terms.  Call me today at 248-514-2640.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-5114-2640


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