In a proposed bill co-sponsored by Senator Johnny Isakson of Georgia, Tennessee Senator Lamar Alexander wants Congress to provide tax credits of up to $15,000 over three years to those who buy new and foreclosed homes. Alexander pointed to a similar strategy used in the 1970’s to stimulate demand for home purchases.
The goals of the proposed legislation are to encourage the purchase of empty homes and stabilize housing prices. He wants encourage weary buyers to resume purchasing homes.
Of course city and county governments are also interested in restoring property tax revenues. Neighborhoods with exceptional numbers of foreclosures are plagued by even further drops on home prices.
Tennessee has seen one of the highest foreclosure increases. It reached the eighth-highest in the nation, according to Alexander.
Potential buyers should contact the Senator’s office to express support for the bill. Those facing foreclosure should contact a HUD-approved housing counselor for help rather than waiting for government assistance that may come too late. This bill might stabilize housing prices, but it will do little to help homeowners facing foreclosure action.
Tags: home buyer tax credit