John Tuggle

Below is .an excerpt from an open Letter from Honorable Johnny Isakson, US Senator, Georgia, dated October 16th, 2009. Senator Isakson is the point man on Capiatl Hill for this important Legislation. He is also a Realtor. Please tell your Congressional Representatives to support his initiatives and do so NOW. This is very important to us all.

Dear Friends,

I am working every day to find a way to extend and expand the current first-time homebuyer tax credit, which is set to expire on November 30, 2009.

I plan to offer a homebuyer tax credit amendment to legislation extending unemployment benefits. My amendment would remove the first-time homebuyer requirement, extend the tax credit until June 30, 2010, and raise the income limits to $150,000 for an individual or $300,000 for a couple.

I will testify on Tuesday before the Senate Banking Committee on the state of our nation's housing market and the need to extend the homebuyer tax credit. After spending more than three decades in the real estate business, I understand the housing market and its critical role in our overall economy. The current first-time homebuyer tax credit has made a difference. First-time home buyers have used it and the market has stabilized slightly. The National Association of Realtors estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.

However, the real housing recession is not only with first-time home buyers. I believe we have a recession in the "trade-in" or "move-up" market in which citizens are putting off purchasing their next home. Today in the United States, one in two home sales is a short sale or a foreclosure. That is an unhealthy market, and Americans are still facing an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market.

Home sales do more than simply stabilize the housing market. NAR research shows that each home sale at the median price in 2008 generated $63,260 of economic impact. I believe my amendment will swiftly help our economy get back on track.

The idea of expanding the current homebuyer tax credit has been endorsed by the U.S. Chamber of Commerce, National Association of Realtors, Business Roundtable Housing Working Group and Mortgage Bankers Association.

Sincerely,
Johnny Isakson,

US Senate

Washington, DC

In a recent interview with MS-NBC, the Commissioner of the FHA made some very interesting points. A lot of this information is not widely known. Some key points that Mr. Stevens made were as follows:

1. The FHA is not considering going to a minimum credit score formula for qualification at the present

2. The FHA has $ 30 Billion in excess capital to cover risk to their portfolio and although foreclosures are and have been high, the capital in the bank is continuing to exceed the risk (delinquent borrowers). The FHA WILL survive.

3. FHA currently has no intention of going to "Risk Based MIP Premiums). The current rate for most FHA loans is 1.75%. The FHA currently plans to continue the moratorium on raising this with a Risk Based Pricing System (lower credit score, higher premium)

4. The FHA is doing business with high quality borrowers. The average credit score for FHA Borrowers has increased to 690 from 630.

Please click below for the interview. It is very enlightening.

http://www.cnbc.com/id/15840232?video=1274114504&play=1

Dear [ Decision Maker ],

As a Realtor and a constituent, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation. Today's lower prices and interest rates appeal to consumers, but it's been the tax credit that has attracted people to open houses and to homeownership.

That progress could grind to a halt sooner than you think. Congress must act NOW to extend the credit through 2010. Otherwise, uncertainty will return and the market might again be frozen -- possibly as soon as October.

A homebuyer is eligible for the tax credit only if the home is "purchased" before December 1, 2009. That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today's market, it generally takes between 45 and 60 days to go from contract to closing.

The market has improved, but it has not yet fully corrected itself. The credit needs to be extended for an additional period of time and expanded in order to build upon the progress that's been made. Uncertainty about the future of the credit will dampen consumer demand. The best way to assure continued housing activity is to extend and expand the credit and to do that NOW.

We can't wait until late in the year to see what happens. Consumers will drop out soon if they can't predict what's in their future. Please act NOW to extend and expand the credit through 2010.

Sincerely,
[Your name]
[Your address]

Open letter from Senator Johnny Isakson, Georgia in reference to First time Homebuyer Tax Credit, currently under review and debate in the Senate.

Dear Friends,

First-Time Homebuyers Forum
I'm pleased to announce that I will host a statewide First-Time Homebuyer's Forum on Saturday, June 27, 2009. The workshop will be held at the Busbee Center at Gwinnett Technical College in Lawrenceville, Ga., from 10 a.m. until noon.

This forum is an opportunity for first-time homebuyers to hear from professionals on best practices for first-time homebuyers, federal and state tax incentives, how to choose a Realtor, and general information on the home purchasing process. Presenting organizations will include the U.S. Department of Housing and Urban Development, the Georgia Department of Community Affairs, the Georgia Association of Realtors and the Mortgage Bankers Association of Georgia. Representatives from the U.S. Small Business Administration, the Department of Veterans' Affairs, the Atlanta Board of Realtors and Gwinnett County also will be available to speak with attendees.

Anyone interested in attending interested must make a reservation online at rsvp@isakson.senate.gov, or by contacting my office at (770) 661-0999. All persons who wish to attend must do so by the registration deadline on Thursday, June 25, 2009, at 5 p.m.

I am honored to be able to offer this excellent opportunity to first-time homebuyers from across Georgia. As someone who was in the real estate business for more than three decades, I'm well aware of the value of a knowledgeable buyer. Information is power in home buying and negotiating, and I encourage anyone interested in meeting with professionals in the field to participate in our forum.

Senatory Johnny Isakson, Georgia

Dear Friends,

This week, I introduced stand-alone legislation to boost housing demand and to restore the economy by expanding the first-time homebuyer tax credit passed by Congress earlier this year.

The legislation would increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers. The legislation also would eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit. Finally, the legislation would extend the tax credit for one year from date of enactment and would allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.

The legislation has already been endorsed by the National Association of Realtors and the Housing Working Group of Business Roundtable. In addition, it has gained bipartisan support in the Senate from Senators Lamar Alexander, R-Tenn., Jim Bunning, R-Ky., Saxby Chambliss, R-Ga., Chris Dodd, D-Conn., John Ensign, R-Nev., Joe Lieberman, ID-Conn., Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and David Vitter, R-La.

After spending more than three decades in the real estate business, I understand the housing market and its critical role in our overall economy. In the mid-1970's when America faced a similar housing crisis following a period of easy credit and loose underwriting that flooded the market with new construction and a three-year supply of vacant homes, Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. The results from that tax credit were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

The first-time homebuyer tax credit has made a difference. First-time home buyers have used it and the market has stabilized slightly. However, the real housing recession is not with first-time home buyers - we have a recession in the move-up market. Americans are still facing an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.

Today, in the United States, one in two sales made every day is a short sale or a foreclosure. That is an unhealthy market, and it is continuing to precipitate a downward spiral in values, loss of equity by the American people and a protracted, difficult economic time for our country. This legislation will swiftly help our economy get back on track.

From Honorable Johnny Isakson, US Senate, Georgia