California Insurance Plan Helps Laid-Off Buyers
An insurance plan devised by the California Association of REALTORS® promises to pay home buyers up to $1,500 a month for six months if they are laid off.
The “mortgage protection plans,” which were offered beginning in spring 2009, are aimed at home sellers who purchase the policies to inspire the confidence of potential buyers.
Under the program, sellers pay a premium of $200 for six mortgage payments of up to $1,000 each or $275 for six mortgage payments of $1,500 each.
University of Southern California Professor of Business Lars Perner said he thinks this is a good idea. “Taking away some of that fear of getting into big trouble is something that could easily tip the balance.”
Source: The Associated Press, Jacob Adelman (11/12/2010)
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California Extends Home Buyer Tax Credit
California has re-established and extended a $10,000 home buyer tax credit, allocating $200 million to the credit for homes purchased between May 1 and Dec. 31, and between Dec. 31 and Aug. 1, 2011.
Steve Goddard, president of the California Association of REALTORS®, said the tax credit will help create incentive for first-time home buyers to purchase abandoned and foreclosed homes. “It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities,” Goddard said.
The credit will be split between first-time buyers and buyers who have lived in their home for at least two years.
“The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state’s economy,” said Liz Snow, CEO and president of the California Building Industry Association, in a statement.
Source: Inman News (03/25/2010)
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