Foreclosures are a major problem, epically in today’s bad Housing Market, however with ever problem there come solutions. There is nothing we can’t fix. Fixing these problems with feasible solutions is what we must do. Currently the Obama administration is give tax break incentives from first time home buyers and its WORKING! The housing market has made a very remarkable recover from just one year ago, but as great as these tax break incentives for buying a new home do not encourage this first time buyers to make a smart home purchase.
All home owners not just new ones must make smarter home purchase if this foreclosure problem is to be fixed. To me a smart home purchase occurs when you by a home in the lower end of your price range instead of making a risk move by buying a home at the higher end of your price rage. By buying a home at the lower end of your price range you make it much easier to pay off your mortgage. But how do we get people who make 50,000 dollars a year stop buying 230,000 dollar houses and foreclosing on them three years later? Why, with the same tax break incentives that have helped the housing market so greatly of course.
We need to offer tax breaks to Americans who pay more than the monthly minimum payments on there mortgages. Americans who do this are clearly responsible enough to not bite of more than they can chew when it comes there mortgage and therefore should be rewarded by the government through tax breaks. If we could do this then the home would be out of the banks hands and into the owner’s hands that much quicker than if they were to just pay the minimum. That’s all we really need to do after all, get the homes out of the banks ownership and into that of the ‘home owners’. Encouraging more people to be responsible home buyers would be very beneficial to the Foreclosure crisis.
Also the government should offer tax break initiatives to all home buyers who opt for a 15 year mortgage instead of a 30 year mortgage. Even though 15 year mortgages are not nearly as common they have some great benefits that are often overlooked. Typically 15 year mortgages have lower interest rates, plus you build equity quicker and own your home in half the time. If the government would offer a tax break incentive to do this and put this information out for all to see then I think that the number of foreclosures could decline even more so.
Another idea is to give a tax break to home owners once they have paid of the mortgage in full. This will also encourage people to pay off there mortgage faster. If all three tax break ideas are combined may people will start to realize that smart home buying can be very profitable for them with all the money they could save with taxes each year and the number of foreclosures would decrease greatly.
The Obama administration has proven that you can encourage first time home buyers to buy a home just by offering a simple tax...