Angela,
Yup people that are upside down but can still afford their home will choose to move on to lower payments.
Take care!
RJH
Hi Angela,
What do I think, I think you are correct in your analysis. We saw the same thing before in the 90's, back then even without the ability of debt forgiveness. While the change helps some, sorry to say others abuse it.
Yes its sad that people abuse these things designed to help people in a jam.. I have been in Real Estate for 5 years so i havent seen a change in the market like this before, i look forward to getting the benefit of all of you more experienced Realtors out there to keep me right!
Thanks
Angela,
Debt forgiveness should be a taxable income because some people will abuse it which is not the reason why they passed the law. It is to help people who is having difficuly making their mortgage payments.
I think it is a good idea, but there has to be a lot of checks and balances put in place first. I don't like the government involved in my life too much, but there has to be a happy middle ground and I'm not sure this is it as it is being presented. I like the idea of a new loan being put in place at the lower value of the property and that brings the payments down. But, then if they sell it in the future, any profit made from the sale goes to the mortgage company that took the loss in the first place to the point of the original loan.
Welcome to the rain and hope you end up enjoying the rain as much as I have,
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