[System detected duplicate content; converted into image. Thanks] _________________ Shane Milne TheBestHomeLoans.com
Mortgage Broker
Direct: 949-273-4161
Lending in 50 states + the District
Great info really . The Government is doing great job. It will relief thousands of home owners. This is really the Christmas gift from the Government to us
Posted: Sat Dec 22, 2007 4:39 am Post subject: RE: mortgage tax relief
Hey Shane,
This is indeed good news for all those distressed homeowners who are finding it hard to hold on to their mortgages and their properties. The initial subprime market turmoil did have a disastrous effect on homeowners - several of them faced foreclosures; some went for short sale but the market didn't support, home prices fell, so what could they do.
The homeowners could only sell off their properties at a lower price, and then they had to face the burden of paying taxes on whatever debt they couldn't pay to the lender and just asked for a cancellation. Now even when the lender was good enough to cancel the debt, the homeowners had to pay tax as canceled debt was considered to be income for the homeowner and a loss for the lender. So, in addition to the payment of the mortgage somehow, there was this tax burden!
Now that the law has been passed, it's a great relief to homeowners in mortgage problems. They need not pay such tax and can work towards paying off their home loans and keeping their homes safe.
However, the government aims to terminate the law by 2009 so that within this period the economy gets back on track and the taxes on canceled debt can again be resumed. That's the situation right now and I believe it's a welcome decision to improve the financial situation of homeowners and in a broader sense the economy because the mortgage market is closely linked with other financial markets.
Its good to see that that lenders are being forced to help people that have gotten into stupid loans that were set to adjust in only 2 or 3 years. However they did choose the lower interest rate and payment for in return for an adjustable rate. So basicallly, under this new plan, those that choose the fixed rate and paid a higher rate with higher payments to play it safe are basically getting penalized. Those that took the risk, are now avoiding paying for it. I don't know how much I do agree with this plan. I think it just takes away the risk they customer choose to take. _________________ Irene
www.real-mortgage-quotes.com
John Weyhgandt Guest
Posted: Sat Oct 04, 2008 6:07 am Post subject: mortgage relief act
What about when the mortgage was not used for improvements or aquisition? Example: What if they used the money to start a business or pay off debt? Is that tax debt forgiven?
Ryan Guest
Posted: Fri Oct 10, 2008 6:01 am Post subject:
I suppose the law is applicable only for residential home mortgages.
If the mortgage was used to start a business or pay off debt, then the tax break for mortgage forgiveness will not apply. You will get the facility of tax break for mortgage forgiveness only when you acquire, construct or improve your home.
Thanks,
Jerry
jen Guest
Posted: Tue Oct 14, 2008 1:44 pm Post subject:
i have a problem now because i recently built a new house we just closed on and the house i currently have a mortgage on I was going to be renting out but now my renters bailed out on me and I placed an ad in the newspaper twice and no one has called, and I cant afford to make 2 mortgage paymens so any suggestions.........
You can speak to the lender about the loan modification plans and he may come up with a plan that you can afford. If the loan modifications do not suit you, you can go for a short sale provided if the lender agrees.
Thanks,
Jerry
Jen Guest
Posted: Wed Oct 15, 2008 6:01 pm Post subject:
Thanks Jerry, but I since I just purchased a new home I dont think I will qualify for a modification on the loan, but I will try a short sale in the mean time, but I can't make two mortgage payments so can anything happen to me legally if I default on the mortgage?
If you default on the mortgage, the lender may foreclose the property and sell it off to recover his debts. The lender may also give you the option of short sale.
Thanks. _________________ Good is the Enemy of Great.
jen Guest
Posted: Thu Oct 16, 2008 3:55 am Post subject:
ok thanks for the info
linda Guest
Posted: Wed Oct 22, 2008 4:52 pm Post subject: foreclosure
the tax relief plan, how do you prove that the refinace part of the loan was to improve your house vs pay of debt?..can they still collect tax on the rest of what we would owe after the deed in lieu?..I thought they passed a law where they wont ?
shane
. The Government is doing great job. It will relief thousands of home owners. This is really the Christmas gift from the Government to us 
