Archive for the ‘Economics’ Category
HR 5830: The FHA Housing Stabilization & Homeownership Retention Act
On April 17, 2008, Rep. Barney Frank introduced in the House a bill that would enable the FHA to refinance home loans at 90% of current market value with the goal of keeping more home owners in their homes. I will track this bill through the House and Senate as I did with the Mortgage Forgiveness Debt Relief Act of 2007.
In essence, this would provide for a government guaranteed short refinance, where, like a short sale, the lender on the distressed loan takes less than is owed. I will post my analysis of the bill in a future post.
Here is the full text of the bill:
Short Sale and Phantom Tax Debt Relief Overview
Lots of questions have arisen from people since President Bush signed into law the Mortgage Forgiveness Debt Relief Act of 2007, whereby in certain circumstances, a homeowner does not have to pay federal income tax on debt forgiven on a loan secured by a qualified principal residence via a short sale, foreclosure, deed in lieu, loan workout or short refinance where the loan amount was reduced and forgiven in order for the homeowner to keep the property.
Bush Signs Mortgage Debt Forgiveness Act
With a stroke of the pen, President Bush signed into law H.R. 3648, The Mortgage Debt Relief Act of 2007, and dramatically changed the lives of homeowners across the country who are facing foreclosure, considering a short sale, negotiating a loan workout, or have done any of these since January 1, 2007.
While this bill has been long awaited by homeowners who would be penalized by the potential phantom tax, and real estate agents praying that it will open the flood gates to more business via short sale listings, the goal of the Administration and legislators is to reduce the number of foreclosures and the need for short sales by allowing homeowners to renegotiate their loans without tax consequences.
Mortgage Debt Forgiveness Passed by Senate
UPDATE: President Bush signs HR 3648, The Mortgage Forgiveness Debt Relief Act of 2007.
It took them close to two and half months, but the U.S. Senate finally got around to passing H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. Initially sent to the Senate on October 4th, the Senate passed this legislation on Friday, December 14th, allowing Senate Finance Committee Chairman Max Baucus to crow a bit about helping the U.S. homeowner dealing with foreclosure or a short sale.
California Tax Refunds For Fire Victims
Immediate tax relief in the form of tax refunds is available to victims of the wildfires in the seven Southern California Counties of San Diego, Santa Barbara, Ventura, Los Angeles, San Bernardino, Orange, and Riverside, The Franchise Tax Board (FTB) announced.
Property Tax Relief For San Diego Fire Victims
Many San Diego County property owners who suffered damage from the fires that ravaged the County are eligible for property tax relief.
California law, Revenue & Taxation Code Section 170, provides property tax relief for taxpayers whose property was damaged or destroyed as a result of the wild fires that engulfed San Diego County, by allowing the Assessor’s Office to temporarily reduce the assessed value of a property that was damaged or destroyed through no fault of the property owner. This relief is available to owners of real estate, business equipment and fixtures, and to owners of boats and aircraft. This program requires reassessment of the property to reflect its damaged condition, and the subsequent reduction or partial refund of the current year’s taxes.
Bank of America To Cut Off Mortgage Brokers
Ken Lewis, CEO of Bank of America, the nation’s second-largest bank, announced on Friday that it will shut down its consumer real estate division and its wholesale lending unit, which offers residential mortgages through over 7,000 independent brokers, at the end of the year.
The move signals a commitment to focus on direct-to-consumer lending through its banking centers and loan officers, said Floyd Robinson, Bank of America’s president of consumer real estate and insurance services. “While we are extremely proud of our strong track record in the wholesale business, we believe our long-term opportunity lies in maximizing our more competitive retail channels.”
House Passes Mortgage Forgiveness Debt Relief
Many San Diego homeowners considering a short sale or facing foreclosure got a bit of good news today with the U.S. House of Representatives passing H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. The bill addresses the forgiveness of acquisition debt, which is that debt used to purchase real estate that is used as a primary residence. This debt forgiveness due to a short sale or foreclosure would not be subject to taxation as earned income. The bill now goes to the Senate.
The bill saw a few modifications from it’s original version approved by the House Ways and Means Committee.
UPDATE: 12/14/2007 - Senate passes H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007.
UPDATE: President Bush signs The Mortgage Forgiveness Debt Relief Act of 2007.
Overview of debt forgiveness portion of bill: Short Sale and Phantom Tax Debt Relief Overview
Mortgage Forgiveness Debt Relief On The Fast Track
Someone lit a fire under Rep. Charles "Charlie" Rangel, which is good news for the San Diego real estate market in general, and many homeowners trying to determine the lesser of two evils, foreclosure or a short sale and the tax liability which goes with it.
Short Sale Overview Short-circuited by Realtor Trade Group
The other day I wrote a post about a short sale as a viable solution. The subject has been bandied about as an alternate solution for a homeowner who may be faced with losing the home to foreclosure. It has become the agent listing tool de jour. However, it is complicated and there are tax and legal issues that go beyond the scope of what most agents are qualified to address with most potential short sale candidates.
I view myself as a problem solver, negotiator, and marketing expert, then as a real estate sales person. My logic is simple. I believe that when buying or selling real estate, you need access to as much factual information as possible in order to make an intelligent decision, or rather, the best decision possible for that particular situation. Given that mindset, I set out to provide an unbiased, intelligent overview of the issues surrounding short sales.
I did some homework and found an excellent piece written by the legal eagles at the California Association of Realtors (CAR). I prefaced the post with this:
