This is a BIG ONE! I've already written to my Senator and Representatives. THIS NEEDS TO BE RENEWED. ANYONE THAT THINKS THAT THIS IS INCONSEQUENTIAL and can be used for an EASY SOURCE OF REVINUE IS WAY OFF BASE.
PLEASE WRITE OR CALL YOUR ELECTED OFFICIALS AND CLEARLY SUPPORT THE RENEWAL OF THIS VERY IMPORTANT HOME OWNER PROVISION.
Thanks Debb for allowing re-posting.
Call or e-mail NOW.
The Mortgage Debt Forgiveness Act - Congress, the clock is ticking.
The Mortgage Debt Forgiveness Act is set to expire at midnight on December 31, 2012. When it does, thousands of homeowners will lose their incentive to choose short sales. Instead, they are likely to allow their houses to go into foreclosure.
As usual, while the players in Washington battle issues and ideology, the rest of us nervously await the outcome of decisions that we hope will move us forward - not set us back. If they fail to extend the Mortgage Debt Forgiveness Act, the slowly recovering, and still vulnerable, housing market will suffer.
For example, we have just received loan approval from both banks for one of my short sale listings. Both approvals require closing on/or before January 31st, 2013. The buyer cannot get the inspection and her financing done by a 12/31/2012 deadline. This morning I received this email from the seller.
"Unless this can close by the end of the year, I can not afford to be taxed on the debt forgiven. My best option is foreclosure. So unless congress finishes extending through 2013 I don't think I can afford to go through with the short sale beyond 12/31/12."
If this happens, months of marketing and negotiation efforts will be for naught - and the seller will face larger credit consequences. In addition, the home, which is now vacant and in disrepair, was recently broken into. Fortunately, there wasn't much damage - this time. If this property sits vacant through a foreclosure process, its value will continue to decline.
Today, the seller is reacting in panic mode, never a good time to make decisions. Our short sale team at The Carl Group advised her to contact her CPA. Chances are, she can prove insolvency - insolvency is the difference between your debts and your assets at the time of loan forgiveness.
The outcome of this particular short sale remains to be seen, however it's a good representation of things to come if Congress fails to act by the end of the year. The Mortage Debt Forgiveness Act is set to expire at midnight on December 31, 2012 - Congress, the clock is ticking.
The Carl Group, Serving Clark County, WA
Specializing in Vancouver - Camas - Washougal - Fisher's Landing
you can always find me at DebbJanes.com
As an EcoBroker, I combine my love of nature, people and the planet with my job as a Realtor®, that way, I can help you live in a more beautiful, comfortable and healthier environment, and save you money. Let me be your guide.
In addition, my passion for the Northwest lifestyle and our area's many neighborhoods ensure you a great selling or buying experience.
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It's All About YOU! Brad Rachielles, REALTOR, Upland, CA. BRE# 01489453
Brad Rachielles, REALTOR. Helping Inland Empire Buyers and Sellers with their Real Estate needs in the Communities of: Upland, Rancho Cucamonga, Fontana, Claremont, Ontario, Chino, Chino Hills, Pomona and La Verne, CA.
Cell: 909-816-7333 B.R E. # 01489453
Web Page: http://www.BradRachielles.com