Metro Atlanta, Gerogia Real Estate Market, North Georgia, REO Sales

The Fed's came to the rescue of Wall street early in October with the Nations largest ever in history ..."private sector "bail Out"  rescue plan. Will it work? Will the Wall Street firms use those funds to open up bank lending to home buyers? That is the "Billion Dollar Question"?

Under this plan, the US treasury is authorized to spend up to $250 billion immediately to buy mortgage backed securities and other investments that have "high" potential for default. The other $450 billion (Tax Payers) is available on a very restricted basis...This is going to be a Shell Game....and I am not sure what lays before us. The middle income buyers are the ones that are being squeezed. High income buyers are still able to get money loaned to them, however; they are paying more. There is still the program that I feel makes good sense in today's market that is the FHA financing.

Other provisions of the plan that I think many do not know:

* More insurance for savings. The FDIC and National Credit Union share insurance Fund deposit insurance limits were raised from $100,00 to $250,000 until December 31 2009.

* Longer term tax forgiveness on mortgage debt cancelation. Qualified home owners will be able to "exclude" any income from the cancelation of mortgage debt through 2012.

* Better breaks for energy efficiency. The 30% tax break for residential and commercial solar installations was extended through 2016

* Higher alternative minimum tax limits.

The AMT limit for 2008 will be $69,950 for married taxpayers filling jointly and $46,200 for individuals.

Well remember if you need any help Selling or Buying a property....feel free to contact me 24 hours a day   Take Care until next time.