Foreclosure News: Dispute Over the Federal Tax Credit for Purchasing Foreclosed Homes

Foreclosure news indicate that US Congress is considering recommendations to expand the federal tax credit given to first time home buyers when they purchase foreclosed homes to include everyone except those with high income. Supporters of the tax credit argue that it could help in slowing down the slide in home prices. By encouraging buyers, the program is expected to increase the demand for homes, push up home market values, and stimulate the creation of more jobs.  However, opponents claim that it is only a temporary solution to the housing crisis and is therefore a poor application of taxpayers’ money.