MID removal- let's hope it's not the final nail in the coffin of real estate!

By
Real Estate Agent with Century 21 Weinert Realty

I'm not generally political in my real estate commentary, however I feel it encumbent upon all of us to really grab this bull by the horns (with a bullhorn) and, like all the little Whos, make a loud enough noise that we're all heard in Washington.

As most of you probably know, congress is considering passing a bill that would remove the mortgage interest deduction from all of us.  As a realtor and a homeowner I am flabberghasted at the mere thought of this.  As if the real estate market has not been bad enough, congress is considering cutting the very legs of the real estate industry off at the knees by eliminating this deduction.  Aren't we in enough trouble already with massive unemployment, massive foreclosures and shortsales, 30-40% of homeowners under water??????????  And what of those homeowners who are upside down and have been trying to do the right thing by hanging in there and paying their mortgages despite the hardship and lack of equity?  Now, not only will they continue to pay on a home with no equity but they will be penalized from being able to deduct what is likely almost all interest from their payments, in many cases tipping them over the edge into foreclosure.  

I have called my congressman and let him know where I stand, have you?  Get the word out!

 

Comments (2)

Dawn Crawley
Dawn Crawley Realty - Pinehurst, NC
Find Pinehurst Homes

I'm sorry Linda, but I have to disagree with you. If a mortgage deduction is all that is keeping them in their house, then they'll probably end up losing it anyway. I think this country needs its entire tax code restructured, and that includes all tax deduction. I actually think the fair tax is the way to go. No income tax at all, no need for this crazy tax code we have, and have everyone pay tax at the consumption level. The rich will pay more because they buy more. The less rich will pay less because the buy less. People will buy houses if they want homeownership. 

Dec 03, 2010 08:58 AM
Linda Breeden
Century 21 Weinert Realty - Safety Harbor, FL

Hi Dawn,

Thanks for the response.  I agree with you in theory.  Ideally we wouldn't have an income tax and things do need restructuring.  I also believe a consumptiont tax would be much more workable.  However, we are a long way from that ideal situation and there need to be gradients to get there that will not harm a large segment of the population.

It also seems odd to me that the government would give $8000 to first time home buyers just to yank the rug once they've purchased their homes and that it would risk so many potential foreclosures from people that are close in their payments. Perhaps it is the same argument in different attire as medicare, social security etc.  Perhaps they need to change, but cutting them off after the expectancy and the practice is there does not appear to be a workable solution to me.

 

Dec 03, 2010 10:03 AM