Petition to extend Mortgage Debt Forgiveness Act
As many of us may already know, the Mortgage Debt Forgiveness Act of 2007 is expiring December 31 2012. However, we also know that we expect more property owners will explore going through a short sale. But will they have enough time? Will the lenders act quicker to approve/reject/counter short sale applications?
According to the IRS, "The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief."
The Federal Savings Bank/Lending in 50 states - Greenwich, CT
These acts are so involved and difficult to navigate that many of those for whose benefit it was created are not helped.
Jan 30, 2012 08:48 AM
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes
Signed, reblogged and suggested. Just common sense. The other option is to rent it out then short sale it and take a capital loss to off set the gain, but check with an accountant on that.
Jan 30, 2012 09:01 AM
Askov, MN
Realtor 651-674-7449
The problem with this is that it also encourages those who can pay their current mortgagae to default. Every default is keepng the market and prices down.
I understand the reason for it, but we need to stop the give-aways somewhere. WE need the government to bud out!
Jan 30, 2012 09:08 AM
pha logistix inc - San Francisco, CA
SF NYC LA
Pacita... signed and suggested. I see that Vern, #3, has differing views so I'll pop back in to see the comments!
Jan 30, 2012 09:40 AM
HomeSmart Real Estate - Phoenix, AZ
602-380-4886
Pacita....this has been on my mind this past few weeks. We must get it extended for at least another 2 years or a lot of folks in areas hard hit like Phoenix - well - it's like throwing fire on them. Let's keep getting the word our over and over and over......and over ......
Featured in BananaTude
Jan 30, 2012 09:49 AM
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA
Jeff --- i know that some short sales are convoluted....but the ones I've been involved with were true hardship cases. At least they tried the right way without
Gene --- thanks....there are still so many who struggled but just couldn't in this economy. As long as they are doing the short sale, we can help them keep their dignity and hope
Vern --- maybe the government can butt out of other things....?
Peggy --- those sellers who are doing it for the right reasons, I will help. Those who aren't I turn down.
Anna --- thus far, this is the only petition I've seen. I haven't seen NAR's position on the subject.
Jan 30, 2012 11:20 AM
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties
i just had a conversation about this today with my client. This is an election year so I wouldn't be surprised at all if it gets extended. I sure hope it does.
Jan 30, 2012 12:46 PM
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"
Hi Pacita, I agree with Jim, in election years things have a way of getting extended. Lets hope.
Jan 30, 2012 01:08 PM
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services
Pacita, I cannot imagine this not being extended ... we need it. The market will see another crash if homeowners are not given some help. Can you imagine the fall out if all the short sales that we know are coming went to foreclosure! It would be a repeat of what we already experienced.
Jan 30, 2012 02:11 PM
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA
Jim --- from where I sit, with seller hoping to do a short sale because of their current situation, I do hope it gets extended
Will ---I do hope so
Kathleen --- I haven't seen anything from NAR about this. Wonder if they're waiting later in the year to address this
Jan 30, 2012 04:19 PM
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739
Pacita, let's hope NAR is working on this. Although, personally, I would like them to add one needs proof of financial hardship to receive the tax benefits. There are still too many just walking away when they could actually pay.
Jan 31, 2012 03:24 PM
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA
Juli --- We all know people doing a short sale not because they can no longer afford their mortgage, but because their property is worth less than what they paid for it. The financial "hardship" is drop in market value.
Jan 31, 2012 05:04 PM
Compass - San Francisco, CA
Helping make your real estate dreams a reality
Pacita, thanks for getting this info out in such a clear way. Petition signed. I went to re-blog, but the button is disabled. Maybe the well-deserved gold star will pop up in a moment.
Feb 02, 2012 01:30 AM
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA
Lottie -- thanks...the post is enabled for re-blogging....gold star or not :)
Feb 02, 2012 03:57 AM
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you
I see nothing on this commercial website to suggest that the petition goes anywhere. In fact, it might just lead to a database so the company can spam you. Here is what it says at the bottom: Mortgage Forgiveness Advocates is not associated with the Government and this survey and petition are not approved by the Government or your lender. Just sayin' . . .
Feb 03, 2012 02:02 AM
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA
Elizabeth --- that's true...but looking around their website, and reading the various information they set up, the free counselors/volunteers they offer, I can only hope that they can be a voice, too, just like CAR (have you seen anything from them?)
Feb 03, 2012 04:21 AM
Rainmaker
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Pacita Dimacali
Alameda/Contra Costa Counties CA
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