Academic

A couple of months ago I blogged about provisions that might help homeowners in what was then called "The Bailout Bill," but was officially titled the Housing and Economic Recovery Act of 2008.  Now that we have seen the second Bailout Bill, and who knows how many more will come down the pike, this one seems almost quaint.  One provision I refer to as "the second-year associate tax credit" is a $7500 tax credit for first-time homebuyers.  This credit is repayable, interest-free, over 15 years, but would allow perfectly liquid homebuyers to take money out of a mutual fund (or borrow from a 401k) and pay it back next April.  Sort of like an 80/10/10 mortgage, with ten percent of the down payment coming from a loan from the federal government.  I even wondered if mortgage lenders wouldn't come up with the "tax credit anticipation loan" so that borrowers didn't even have to cough up the $7500 at all.

Well today, driving down a major street in Champaign, I saw a For Sale sign on a house on the corner.  Next to the For Sale sign was an additional realtor sign that said "$7500 Tax Credit!!"  Many interesting things about this.  First, it was hot pink.  I know it's breast cancer awareness month, but pink seems an odd choice.  Second, the sign might signal to uninformed home shoppers that only this house will qualify for the tax credit.  I wonder if it works?