Here is the hypocrisy in the Obama administration policies on real estate (okay, actually there are many, but here is ONE): they induced tens of thousands of families to purchase real estate by incentivizing them with a federal tax credit. Many home owners received an $8,000 federal tax credit as an inducement to purchase a home. The administration ran around patting itself on the back about how successful the program was etc.
Now they want to eliminate the mortgage interest deduction on taxes. Lure them in with tax incentives and then take the incentives and much more away with significantly higher tax burdens if/when the mortgage interest deduction is eliminated. Can you imagine how many home owners will be forced into default and foreclosure as a result of this new proposed policy?? I know that in my sphere of influence, I have MANY clients and friend that will be forced into foreclosure if the mortgage interest deduction is reduced or eliminated. As an example, there are many senior citizens that obtained reverse mortgages as part of their financial plan. The reverse mortgages worked well for many. However, many have discovered that they no longer receive an income tax refund (because they no longer have a mortgage interest deduction). They did not think of this unintended consequence of the reverse mortgage. The situation is the same if the mortgage interest deduction is eliminated or reduced – many home owners will no longer receive an income tax refund and subsequently be unable to maintain their mortgage payments.
Why does no one seem to notice that this administration has no clue about business, real estate and pretty much anything?? They are completely detached from reality...How in good conscience can they lure so many into home ownership and then pull the rug out from underneath them financially?? The tax credit was a one-time $8,000 credit and the amount of money lost to additional taxes will be exponentially higher than $8,000. This is borderline despicable even if the administration did not think of this aspect 9and it is entirely possible that they didn’t because the administration tends to leap into action before thinking).
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