opinions on tax rebate

>I personally cannot imagine closing on another house before
>the first house is sold...too scary for me.

Now maybe not, but here in the Bay Area there was a time when you HAD to have another house just about closed before you put yours on the market as it was a lot tougher to buy a house than to sell one.

We were so fortunate to buy our house in the school district we're in during the market dip in 2001. We're not affected, yet, by the housing decline. I could still sell my house in a week with multiple offers above the asking price. I don't know how much longer that will last, and I have 3 more years to go in this school district, so I'm not selling. But in other areas around the Bay, it's not the same at all. I have friends in real estate that are forced to sell their own homes because they cannot afford them any longer because of the decline.

But I agree with Dave - this move is extremely short sighted and will really hurt us in the long run which really makes me wonder about the folks we've elected to represent us.
 
The most common situation I can reference?

2 bedroom house with 3 kids - one of which is an infant.

There is sharing a bedroom, and then there is just plain crowded.
I suppose "force" is a strong word to use, and there are ways to be creative if the $$ wasn't initially there. But in those sitations it was...the $$ only became an issue after the fact when it came to selling.

It may be more common in my area, but most people don't wait to sell until they buy here.
 
I think the "buy another before you sell the one you're in" became more popular with the latest boom seller's market. When my ex hubby and I wanted to move up from our starter home in the late eighties we didn't even consider closing the deal on the new house until we had an offer on the old one, the market just wasn't good enough to count on that and people rarely did it. We were lucky that we weren't moving out of the area and could afford to wait.

As far as the 'rebate' goes I won't get one either but I agree that it is really a band aid at best. People that are having trouble paying their mortgage aren't going to use the money to buy consumer items to boost the economy.
 
What's very scary is that I just heard an analyst on the radio today talking about the mortgage crisis and he SUGGESTED that people who owe more on their houses than the house is worth simply walk away!?!?! He said that it made more sense than trying to keep a house that you're underwater on! What about a good credit score and following your commitments! Holy cow! I'm really worried about this country.
 
I appreciate getting my own money back, rather than funding someone that mooches off others. We are over-taxed, like mad. It's insane.
 
I have to agree with all the previous opinions. Is this the best our president and legislators can do? I am so scared that our political leaders have absolutely no economic sense. I truly believe that we should know 'and have ready access to' the credit scores of all those who run for public office. After all, if they can't manage their own finances, why should we hire them to handle the finances of this country?

I'm stuffing the checks in the bank so that when the government realizes that it needs to raise taxes to pay for this stupid idea, I'll have the money to pay it. }(

Angie
 
Dh and I are going to buy a pool....an american made pool!!!

This has happened before...in 2003 I think. I don't remember the outcome being bad.

I appreciate the money! We will have great times with our new pool!!!

Sara
 
The only way to boost the economy is long term tax breaks that everyone will feel paycheck to paycheck. More money in peoples' pockets on an ongoing basis to assist them with their financial obligations long term - not a one time check - will benefit the most. Think about it, if you're having mortgage problems, what would you rather have, less of your income going to taxes for the year or a single meager check? Risky topic - politics can get heated.

Mo
 
What scary is that we're borrowing the money from China for these tax rebates, and most of that money will most likely go toward consumers buying more products from China. Their government must be very happy, and I'm sure, laughing at us.

We'll be saving our money. Most likely to go toward our staggering medical bills.
 
Here's a little different view - I'm a tax accountant. I HATE this idea and hated it the first time they did it after 9/11. Aside from the questionable economic impact it will have...it is costly beyond the actual dollars going out in checks. There will be extra people manning extra 800 numbers to deal with the millions of people that call and want to know how much they are getting, when they are getting it, etc. etc. etc. And then next year when people file their 08 tax returns, there will be more numbers set up to field the calls of all the people who can't remember how much they got. (They had an automated system last time.) THEN there are the countless hours tax preparers will have added just to deal with the issue with their clients - which they are not compensated for. Not to mention all the extra paperwork that will be mailed with people still manage to screw up their returns over this.

Did I mention this is a dumb idea?

I'm done venting know.
 
Well, without wanting to stir up a controversy or a flame war here, for the past 5 or 6 years I have been forced to pay for a war with my tax dollars that I never asked for or even supported (and I am not talking about Afghanistan - that one I supported).

That being said, let's examine WHY we are getting the tax cut, and why they are doing it right now? Why? BECAUSE we are in an election year, they are throwing us a bone. That damn thing won't do ANYTHING for the ecomomy, give me a break!!!! Most of us are so strapped as it is, our home values are down, about 50 % of the population are upside down on their homes, many are losing their homes, their jobs or have lost them already, oil prices are going up and Exxon is posting a $ 11 Bio profit, most of us have no health insurance or only marginal coverage paying through our teeth for deductibles ........

Most of us will use it to pay down credit card debt or any other debt. Only a very small fraction of us will spend it and supposedly get the economy going. And this will get our national deficit in an even more dire situation and put us more into the pocket of China.

Now, I have been following the primaries closely and aside from other things getting my blood boiling, I get really fed up with the so-called "mortgage bail-out". It pretends that people are unknowing sheep, screwed by big bad mortgage. Whereas I do agree that some mortgage companies and real estate agents did wrong by their clients and didn't educate them adequately, I am also a big proponent of personal responsibility.

To give you an example, I have been a real estate agent for the past 10 years. I also have an MBA with a major in marketing and business/contract law, so I know a little bit and can see the big picture. For my whole real estate career I have been counseling people on what I thought was the best for them and their current situation, and sometimes blown a $ 5, 10, 20k commission and that money sure would have helped to pay my bills.

10 months ago, I had a client (and that wasn't the only one but the one that stuck out) who I told, you can't afford the house that you want to buy. Either stick with your rental until you HAVE the savings and the income, OR buy a smaller, less expensive house. To make a long story short, she dissed me because I as well as my lender kept telling her, don't buy THAT house, you CANNOT afford it.

She went with another real estate agent and his lender, they qualified her on one of those option ARMs with a low payment for 6 months (which I had explained to her what the drawbacks were). They told her what she WANTED to hear, I kissed a $ 9,500 commission goodby because I gave her my honest opinion (I wouldn't do it any other way, but still ...).

Next thing I know, she is going into foreclosure, well there is a big surprise! Now she is sueing the RE agent and the lender. Part of me wants to go to the RE broker and say, I told her and she did not want to listen and just found someone who did what she asked and wanted. On the other hand, I am appalled that the agent and the lender put her into this, and they MUST have known the drawbacks/risks.

I think there is two sides to EVERY story, whereas I think some people got really hosed by their agents and lenders and they didn't really understand what they were getting themselves into and what they put their signature on, I think there are a lot of people who have been warned, they didn't want to listen to the voice of reason, they did it anyway and now they are screaming bloody murder, pointing the finger at everyone else and wanting someone to bail them out.

I am not a fan of "big government" and big spending, I do have a preference who I think would be best suited to deal with all the challenges we face as a country (I won't go into who I support though :) )but I do think whoever will be our next president, will have one heck of a job to getting us out of this mess. I don't envy whoever gets the job and you will have to be in awe of either one of the current candidates wanting to take on the challenge, I just hope they will be genuinely interested in the greater good or well-being of the American people instead of their own agenda.

My opinion, for what it is worth.
 
<<<"Now, I have been following the primaries closely and aside from other things getting my blood boiling, I get really fed up with the so-called "mortgage bail-out". It pretends that people are unknowing sheep, screwed by big bad mortgage. Whereas I do agree that some mortgage companies and real estate agents did wrong by their clients and didn't educate them adequately, I am also a big proponent of personal responsibility.">>>


Amen!
ITA. ;)
 
Pepper for First Dog!!!! (and Scooter, Tuxedo and Jack!).

I agree, Carola! I'm so sick of people not taking responsibility - if they lend it to me, I MUST be able to afford it - um, no, you know what you can afford!!!

My sister and her DH bought a house during the boom with one of those funky mortgages. We warned them, but they knew best. There is only so much you can tell someone and they really wanted the house. When it became apparent that the bottom was dropping out of the market, my DBIL figured out what he needed to do to keep the house, make the payments and survive. It took a bit of manuevering, but they managed. Eventually they will not be under water on the house and their scrambling will have paid off. That's responsibility.
 
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