I just read an interesting article by Thomas Oliver in the Atlanta Journal Constitution about how Realtors®, Mortgage Bankers and Mortgage Brokers were all in favor of extending and/or expanding the First Time Home Buyer (FTHB) Tax Credit. I agree, I think extending it is a great idea. I think expanding it might be helpful, but am concerned about the increasing cost and am withholding judgment on that one.

The part of the article that I really hadn’t considered until now, that caught my attention had to do with the cost of the FTHB Tax Credit versus the cost of loan modifications. It appears, from his research that most of the FTHB purchases in the Atlanta area are purchases of new starter homes, foreclosures, short sales and people that can no longer afford their mortgage payments since the sellers are not moving up the home ladder.

I am pretty sure we will see a lot of the same thing in the Eugene/Springfield area and if that is the case, he is making a great case for continuing the FTHB Tax Credit since it costs a lot less than the loan modification program, $9.6 billion vs $75 billion, especially with the high recidivism rate of the loan modification.

Now, don’t get me wrong, I would love to see an effective loan modification program that actually worked to help people stay in their homes. So far, I don’t think it is working. Even with the new Oregon law requiring foreclosures to offer modification counseling, I don’t think the process will ever work the way it should. A lot of that, in my opinion, has to do with the banks being staffed with people that don’t understand the loan process to begin with and trying to do more than they are capable of getting done. I hope that changes, but I am not going to hold my breath.

In the meantime, the tax credit is due to run out on November 30 at midnight. If you are eligible and qualified and want to be a homeowner, what are you waiting for. Eugene/Springfield area mortgage rates are outstanding. Prices are low. Loans are available. The tax credit is there for the taking. Call me today for an appointment at 541-342-7576/541-221-3455 cell or e-mail me.