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ELIMINATE THE MORTGAGE INTEREST DEDUCTION??

By Lenn Harley

Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

November 11, 2010 10:42 PM

ELIMINATE THE MORTGAGE INTEREST DEDUCTION??

Be careful what you ask for!

I can point to the benefits of the mortgage interest deduction for many, many past home buyer clients. That's a personal experience and many would say self-serving. I'll accept that, but whom does that home purchase benefit in addition to the real estate broker and agent???

Home Owners
Residential Developers
Residential Developers' Staff
Builders
Builders' Staff
Carpenters
Electricians
Plumbers
Landscapers
Garden Shops
Flooring Companies
Decorators
Appliance Manufacturors
Roofers
Brick Layers
Well Diggers
On-site Sewer Disposal Systems
Stone Masons
Heating and A/C Companies
Siding Companies
Concrete Companies
Home Inspectors
Municipal Code Inspectors
County Building Permits Staff
Zoning Staff
Lenders
Loan Officers
Mortgage Investors
And so many more. . . . . .

So, Congress, whose members never saw a dollar that they didn't want to put in their own pocket, sees that deduction as a solution to the U.S. fiscal problem. The $Billions spend on pet projects that will benefit themselves and their families/friends and contributors directly have avoided becoming a target. Any politician who would vote to eliminate the Home Mortgage Interest Deduction should be required to live in rentals.

SHORT SIGHTED IN THE EXTREME!

ADDENDUM: The mortgage interest deduction existed during ALL of the booms and busts in our economy for as long as it has been in the tax code.

This post inspired by Would the Elimination of the Mortgage Interest Deduction Hurt the Housing Market? by Tom Branch.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Pat. This gives the Congress something to talk about.

Carla. For a century, home values have increased proportionally to the GDP. That meant equity. Paying down a mortgage is unrealistic unless home owners make payments to principle.

Tammie. Clearly the government hasn't a clue as to the value of home ownership in this country, or any country. By attacking home owners as they have done for 2 years, the country is reaping the results of their wrong-headed policies.

Mike in Tuscon. Sadly, the government is unable to see beyond their noses, probably because their noses continue to grow and grow.

SCA. Since the late 1970s.

Chuck. Not likely but it wouldn't surprise me one bit.

Nov 12, 2010 10:25 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Ann. It will only stir up a hornet's nest. Sadly, Congress sees the MID as a "Pot O' Gold" that they can spend, spend, spend.

Jim H. I remember when the "economy was lifted by the dot.com boom".

UNLESS I'M WRONG, AND WE KNOW THAT I'M NOT, THE MORTGAGE INTEREST DEDUCTION EXISTED DURING THE DOT.COM BOOM.

In fact, the mortgage interest deduction existed during all of our booms and busts over the past century.

Nov 12, 2010 10:31 PM

Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, MD

301-246-0001 Serving Maryland, DC and Northern VA

It will never end. . two parties fighting each other from election to election. . lying to the public.

YES WE WILL CUT TAXES

&

YES WE WILL REDUCE THE DEFICIT TOO ~wink-wink~

There will be one day we will have to face the consequences of this. . a dear family member was living in Argentina about 20 years ago and they couldn't withdraw their money for days. . .banks were closed by the government, meanwhile the value of their currency went to the floor.. .they were penniless in a matter of a few days. .

Is that in our future?

Nov 12, 2010 10:33 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Fermando. History shows that reductions in taxes does, indeed, generate revenue. The problem is that the wealth generated is squandered by politicians and not used to reduce the debt.

BTW, your money lost some value last week when the Fed pumped $600Billion into the money supply.

Nov 12, 2010 10:48 PM

Jim Shaw

Premiere Plus Realty Co. - Naples, FL

Real Estate Sales Associate, Naples Luxury Real Estate

As usual, Lenn, you are spot on!

The U.S. is in the shape of an hour glass.

At the top of the hour glass is the President, Congress and the Supreme Court.

At the bottom of the hour glass is Main Street Americans like you and I.

Forget about Democrat vs. Republican.

It's Greed, Greed & more Greed at the top and we have allowed it to happen with our apathy.

If we have a future we have to take our country back from the crooked politicians that are in office to enrich themselves and do nothing for the good of the U.S.

Nov 12, 2010 11:23 PM

Jim Shaw

Premiere Plus Realty Co. - Naples, FL

Real Estate Sales Associate, Naples Luxury Real Estate

As usual, Lenn, you are spot on!

The U.S. is in the shape of an hour glass.

At the top of the hour glass is the President, Congress and the Supreme Court.

At the bottom of the hour glass is Main Street Americans like you and I.

Forget about Democrat vs. Republican.

It's Greed, Greed & more Greed at the top and we have allowed it to happen with our apathy.

If we have a future we have to take our country back from the crooked politicians that are in office to enrich themselves and do nothing for the good of the U.S.

Nov 12, 2010 11:23 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Jim. Indeed. I am of the opinion that political corruption is our #1 problem.

Nov 13, 2010 12:20 AM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Boy I sure hope the nit wits running this country don't screw up something else!

Nov 13, 2010 01:28 AM

Tni LeBlanc, Realtor®, J.D.

Mint Properties, Lic. #01871795 - Santa Maria, CA

Tenacious Tni (805) 878-9879

It's a nice deduction and I want it to remain in place. There are so many corporate tax cuts and this is one that everyday people actually benefit from. I think it is just an empty threat. I do believe the mortgage interest deduction will be done away with as soon as they cut social security. Never.

Nov 13, 2010 03:09 AM

Judy Graff

Aaroe + Williamson - Burbank, CA

For those who want this country to have a balanced budget, be careful what you wish for and think about the cuts that would need to be made. This is one of the many suggested cuts on the table.

Nov 13, 2010 05:29 AM

Mike Saunders

Retired - Athens, GA

Lenn - you know how I feel about this, I can only agree to it if there is a complete rewriting of tax code to something like the Fair Tax, or possibly a Flat Tax scheme. However, there would have to be some kind of grandfathering that doesn't put an undue burden on those who currently receive the deduction.

Nov 13, 2010 08:25 AM

Jerry Wright Homes, Inc.

New Homes for Sale Killeen Copperas Cove Ft Hood TX - Copperas Cove, TX

Nothing is going to solve the deficit overnight. It's too big and too complicated to understand completely. And we only get a small part of the full story through the media.. and which ever media you happen to be reading or watching. BUT doing away with the MID is suicide for the real estate industry and the entire economy. If they think we have problems now, just wait until this happens.. which I don't think it will.. but as Lenn says, apparently anything can be SOLD to the American people... case in point is the current leader of the free world.

Nov 13, 2010 03:58 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Bill. Don't hold your breath. They are no where finished with their agenda. Wait until they declare:

coal (EPA) illegal to use,

driving fossil fuel autos illegal,

allocate sq. feet for housing, etc.

They've just gotten started. What they won't be able to get by legislation will now be done with regulation.

Nov 13, 2010 11:11 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Tri. It will remain a target for the politicians. As the percentage of home owners is reduced to less that of renters, it will happen.

Judy. There are a lot more ways to balance the budget than killing the housing industry.

Mike. I suspect that they will not grandfather, but "reduce" the burden to existing borrowers.

Jerry. MY HERO!! My fear is that, with the two years that he has "grandfathered in until 2012", will we be able to survive????

As for the economy, the politicians are only to understand taxation and spending. They are incapable of understanding GROWTH, which would wipe out our deficit and debt if given free market raign. Sadly, not going to happen.

Nov 13, 2010 11:18 PM

Tni LeBlanc, Realtor®, J.D.

Mint Properties, Lic. #01871795 - Santa Maria, CA

Tenacious Tni (805) 878-9879

Lenn, I hope you are wrong! Tni

Nov 14, 2010 04:55 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Tri. Good chance of that since it will absolutely cost votes.

Nov 14, 2010 08:31 AM

Michael Delaware

North Sky Realty LLC - Battle Creek, MI

REALTOR®, CRS, GRI

When I heard this, I knew I had finally heard the most foolish thing almost any Congress to date has ever originated. If it came from Obama, this it is the final straw demonstrating how unknowledgeable he is and unqualified for the job he is holding.

Nov 15, 2010 01:08 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Michael. HA! This, and other actions of his administration are examples of "the epitome of the Peter Principal" and/or a deliberate and planned program to destroy the American economy. Sadly, they have been handed the power and are succeeding.

Nov 15, 2010 10:35 PM

Jackie Hawley

Coldwell Banker Professionals - Oxford, MI

Southeast Michigan Real Estate

We need to go back to part time politicians on the federal level and let the states take care of their own. I've never understood why we need 3/4 of the federal departments/agencies. I live in rural Michigan. Our very good school district needs an agency in DC to tell us how to operate? We really need a post office for every town with a population of less than 1500 people (not houses)? We really need an $85,000 park in a town with 1 road and less than a mile long (maybe 12 homes and another 8 or 10 businesses) because the feds had nothing better to do with the money?

I have no problem getting rid of the mortgage deduction when my federal income tax is drastically reduced.

Nov 19, 2010 10:34 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Jackie. HA! I cannot for the life of my understand why we need a Department of Education, unless it's more push for centralized government and White House control.

Out with it.

Down with it.

Nov 19, 2010 10:31 PM

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