Tax incentives to create homeownership and re-strengthen the housing market

Loan modificatios appear to be a slippery sloap. Shevy Akason from Evergreen realty is surveying homeowners, legislators, attorney's, perspective homeowners, and others to see if there is support and to gain feedback regarding legislation that provides tax incentives to those that purchase and stay in their homes. The bill will allow prospective homeowners to put money into a designated HEA (Home equity account). Money placed into this account will be deducted from their tax returns for income tax purposes, similar to a SEP ira. Example: If a perspetive homeowner has $100,000 saved to buy a home and they place it into this account and purchase a home within the designated period of time they will be refunded $30,000 (if they are in the 30% tax bracket) This money must be used for the down payment or closing costs on a primary residence. In addition, this legislation will allow current homeowners that have less than 50% equity to place money into an HEA account designated for homes they purchased after January 1, 2000 and before Jan 1, 2009 or 180 days after this legislation takes affect, whichever is later. Finally, it allows current homeowners that participate in this program and remain current on their mortgage to go back as far as 2000 and claim an income tax deduction on any money paid toward the principle of their home including their original down payment. To participate in this program homeowner must be in or re-finance into a fully amortized fixed rate 1st mortgage. The legislation should take affect immediately upon passing and be limited to 360 days with options for extensions.

This is only a proposal and we are looking for support, sponsors, and for people to share this with others.