Monday, January 7, 2013

Tax Forgiveness for Short Sales and Insurance to Continue in 2013


The California real estate market can finally breathe a sigh of relief over news of new tax concessions that will avert going over the fiscal cliff. As a result of the fiscal cliff deal, California homeowners and investors can look forward to the continuation of several popular real estate deductions. Many economists lobbied for the extension of certain deductions and tax holidays as a method of averting the fiscal cliff, which was purported to have the potential to push the country into another recession.The prominent immediate concern for California’s housing market was the effect of downward pressure that going over the cliff might have on housing prices. According to Kenneth Harney, “Any significant reductions in long-established tax benefits would inevitably trigger declines in home values.”

Economist Lawrence Yun of the National Association of Realtors warned that prices were certain to fall as much as 15% simply due to buyers discounting their purchase offers to counterbalance losses in write-offs for things like mortgage insurance and local property taxes. California homeowners are no doubt familiar with the mortgage interest deduction, which was created solely to encourage homeownership. The fiscal cliff forced California’s housing economists to consider what the market would be like if such incentives were removed. The loss of such incentives was widely predicted to precipitate severe damage to the recovery of the California Housing market in terms of prices first and foremost.

One of the more important factors in the deal was the American Taxpayer Relief Act of 2012, which originally extended tax breaks scheduled to end in 2011. It now extends certain tax breaks for California property owners through 2013. This act - which is one among several that were negotiated to avoid the fiscal cliff – will allow California homeowners who make less than $100,000 to write off 100% of their mortgage insurance premiums. California homeowners who make more than $100,000 will also receive a write-off, but on a sliding scale. California property owners will also be delighted to know that the Relief Act applies to both private and FHA insurance.

California homeowners who have received debt forgiveness in 2012 in some form were no doubt riveted to fiscal cliff developments regarding the Mortgage Forgiveness Debt Relief Act of 2007, originally set to expire at year-end 2012. Due to Congress’ New Year’s Day fiscal cliff concessions, California homeowners who have gotten a principal reduction or short sale will move into 2013 with one less worry. The Mortgage Forgiveness Act will extend the exemption for California homeowners from paying taxes on the debt they have been forgiven through a principal reduction or short sale. According to Compass Research, in order to qualify for forgiveness up to two million dollars, California homeowners only have to show that the debt in question was “created to buy, build or substantially improve their primary residence.”

With these concessions in place, the recovery of California housing stands to receive a push in momentum. There are winners on both sides, whether that’s lenders and mortgage insurers or buyers and investors. The fiscal cliff deal is starting the year off with a brighter outlook for many California homeowners, and somewhat less uncertainty for the future of California’s housing market.

40 comments:

  1. Fewer than three of five short sales close in California, according to a Short Sale Lender Satisfaction Survey conducted by the trade association and released. Many underwater homeowners who have been hit by the recent economic crisis can no longer afford to stay in their home and just need to sell their home as expeditiously as possible are unable to largely because of the complex and cumbersome short sale california process.

    ReplyDelete
  2. Looking at BofA still having 8.5 BN dollars in bad loans (http://finance.yahoo.com/news/factbox-bofas-mortgage-problems-not-235250718.html), what will happen when these houses are forced onto the market? Especially with the idea of ShortSale Forgiveness only couched through 2013-?
    Seems to me that there is a good amount of worry for 2014 and especially if the inventory isn't held for ransome.

    ReplyDelete
  3. Youг style is unіque in comparison to other
    fοlks I hаνе reaԁ stuff from.
    Τhanks for pοѕting when you haѵe the opρortunity,
    Guess Ι'll just bookmark this site.

    Here is my site - build a healthy brain
    my web page :: nootropic recipes

    ReplyDelete
  4. Undeniably believe that which you stated. Your favorite
    reason appeared to be on the internet the easiest thing
    to be aware of. I say to you, I certainly get irked while
    people think about worries that they just do not know about.
    You managed to hit the nail upon the top and defined out the whole thing
    without having side effect , people could take a signal.
    Will probably be back to get more. Thanks
    My page :: pacareerlink.state.pa.us

    ReplyDelete
  5. I was suggested this blog by my cousin. I'm not sure whether this post is written by him as no one else know such detailed about my trouble. You're wonderful!
    Thanks!
    Also visit my page : diets

    ReplyDelete
  6. Quality content is the key to invite the users to go to see the web site, that's what this web site is providing.
    Also visit my page - Visual Impact Muscle Building

    ReplyDelete
  7. Thank you for another great post. Where else may just
    anyone get that type of information in such an ideal means of writing?
    I've a presentation next week, and I am at the look for such information.
    Here is my page ... Z5 Zeolite Supplement

    ReplyDelete
  8. I really like your published post on real estate. It was very interesting and very impressive, I enjoyed the blog so much for showcasing such and eye-catching real estate. If you have time try to check Patrick Hospes and Julie Matthewson : RE/MAX House Of Real Estate : Home .

    ReplyDelete
  9. My partner and I absolutely love your blog and find many
    of your post's to be what precisely I'm looking for.
    can you offer guest writers to write content in your case?
    I wouldn't mind publishing a post or elaborating on a lot of the subjects you write regarding here. Again, awesome weblog!
    Here is my web blog same day loans

    ReplyDelete
  10. One of the essentials when it comes to doing a short sale successfully with Chase is making sure that you have all the correct documents with the Chase short sale package when you proceed down the short sale path.

    ReplyDelete
  11. Its such as you lеarn my minԁ! You sеem to grаѕp so muсh abоut this, suсh аs you wrote the guiԁe
    in іt oг something. I believe that уou cоulԁ dο ωіth a feω p.
    c. to force thе mеѕsage home а bit, but instead оf that, that iѕ
    excellent blog. A fantastic read. I'll definitely be back.

    Look at my site videos von youtube downloaden
    my webpage - click the next website page

    ReplyDelete
  12. Heyа i am fοr the fiгst tіmе here.
    I came acrοss this boaгd and І find It reallу useful & іt helpeԁ mе
    out much. I hope tо give something bаck anԁ aid
    οthers liκe you helped me.

    My blog post :: http://www.zeitreise-2030.de

    ReplyDelete
  13. With havіn so muсh cоntent аnd aгticlеѕ do уou еver run іnto any issuеs of plagоrism or copyright infringеmеnt?
    My blog has a lоt of eхclusiνе content I've either written myself or outsourced but it looks like a lot of it is popping it up all over the internet without my authorization. Do you know any solutions to help stop content from being stolen? I'ԁ reаlly аρрreciate it.


    Feеl fгee to surf tο my webρage; tens therapy units

    ReplyDelete
  14. Then a splash screen that is not present on the purchased version "nags" for several seconds,
    and the background from the desktop is displayed on the laptop.
    I even find myself backing away from recommending other resources which,
    in the past, I would have shared willingly. Hometown Retired households are comprised of retirees,
    two-thirds of whom are over 65; nonetheless, don't assume that these people don't do much more than hang around the house and watch TV
    all day. you ask with softness coming back into
    your voice as you sit on the sand beside me.
    Cons. This miniature machine generates a monthly power of 40 k - Wh and is 36 inches
    tall. Talcahuano. We're now looking at life lately in entirely new ways. Vision for Space Exploration Cover by NASA used under Public Domain. So be it.

    My website ... http://pulheimarchiv.zohren.net/index.php?title=Benutzer:IsiahKief

    ReplyDelete
  15. Write more, thats all I have to say. It appears that you
    relied on some good sources to make your point.
    You obviously know what you're talking about.

    Here is my web page Foreign Bank Account

    ReplyDelete
  16. Tennis balls, wiffle balls, ping pong balls, and golf balls can also be used.
    Naturally the ideal situation is to be able to lose weight really fast with
    a little amount of discomfort. The reason for this
    rather strange feature is that, as described above,
    apps in the Android Market are listed as they are submitted,
    without any testing.

    Feel free to surf to my homepage - videos von youtube downloaden
    my page > radio sender

    ReplyDelete
  17. Each listing includes the skills taught and the suggested age for the activity.
    You will eventually run into the Download Location menu
    with two options: Wii System Menu and SD Card. A Twitter app for Zune has been created and is
    now available for download through Microsoft's Marketplace.

    Look into my web-site; spiele spielen kostenlos

    ReplyDelete
  18. Ηі! Quіck quеstiοn that's entirely off topic. Do you know how to make your site mobile friendly? My site looks weird when viewing from my iphone4. I'm trying tо
    find a theme or рlugin that might bе able to
    fix thiѕ isѕue. If yοu havе аny reсommendatiоnѕ, ρleаsе shaгe.
    Τhanks!

    Alsο visit my web page; fast weight loss
    My webpage - hcg diet food list

    ReplyDelete
  19. continuously i used to read smaller content which as well clear their motive, and that is also happening with this paragraph which
    I am reading at this time.

    Feel free to surf to my website: online shopping in india

    ReplyDelete
  20. 
    Thanks. Terrific information!
    My site: sextelefontani.waw.pl, sex telefony: http://Sekstelefon.
    wroclaw.pl

    ReplyDelete
  21. I'm more than happy to find this page. I want to to thank you for ones time for this fantastic read!! I definitely loved every little bit of it and I have you book marked to look at new information in your web site.

    My page - 63261

    ReplyDelete
  22. I am curious to find out what blog platform you're working with? I'm having
    some small security issues with my latest

    blog and I'd like to find something more safe. Do you have any recommendations?

    My weblog - www.spanish-property-rentals.co.uk

    ReplyDelete
  23. Fantastic beat ! I would like to apprentice while you amend your
    web site, how can i subscribe for a weblog

    website? The account helped me a appropriate deal. I had been tiny bit familiar of this your broadcast offered
    shiny

    clear idea

    My web page - jimmy carter fly fishing

    ReplyDelete
  24. I was recommended this blog by my cousin. I am not sure whether this post is written

    by him as nobody else know such detailed about my difficulty.

    You're

    wonderful! Thanks!

    My weblog; granada spain to valencia spain

    ReplyDelete
  25. Its like you read my mind! You seem to know so much about this,
    such as you wrote the e-book in it or something. I believe that
    you could do with a few percent to

    power the message house a little bit, however other than that,

    this is fantastic blog. A fantastic read. I'll definitely be back.

    Also visit my homepage http://moodletrainer.com/wiki/index.php?title=Summer_Direct_sun_light_In_Alicante

    ReplyDelete
  26. There are some attention-grabbing cut-off dates on this
    article however I don’t know if I see all of them center to heart.
    There may be some validity but I'll take hold opinion until I look into it

    further. Good article , thanks and we wish more! Added to FeedBurner as properly

    Look into my weblog :: kiwork kirchdorf

    ReplyDelete
  27. A lot of thanks for every one of your hard work on this

    web page. My mother

    takes pleasure in going through

    investigation and it is simple to grasp why.

    I hear all relating to the lively form you

    give priceless tricks by means of

    the blog and

    welcome

    contribution from some

    others on this point so our

    favorite simple princess is without question learning
    a lot. Take advantage of the remaining portion of the new year.
    You're conducting a really good job.

    my web blog - elgg.tronicsis.com

    ReplyDelete
  28. I’m not that much of a online reader to be honest but your sites really nice, keep it up!
    I'll go ahead

    and bookmark your site to come back down the road. All the best

    My website ... http://www.onestep-1.com

    ReplyDelete
  29. You are a very intelligent person!

    Visit my web blog mahuabd.com

    ReplyDelete
  30. I loved up to you will obtain performed

    proper here. The caricature is attractive, your authored subject matter

    stylish. however, you command get got an impatience

    over that you want be delivering the following.
    sick

    indubitably come further beforehand again

    since exactly the same nearly a lot

    steadily inside of case you shield this hike.

    Feel free to surf to my homepage ... http://rallyshow.rossiysky.ru/en/node/19880

    ReplyDelete
  31. magnificent points altogether, you simply gained a brand new reader.


    What would you suggest about your post that you
    made some days ago? Any positive?

    Review my page: columbiacycleworks.com

    ReplyDelete
  32. I just like the valuable information you supply
    on your

    articles. I’ll bookmark your blog and check once more right here

    regularly. I am fairly sure

    I will be told plenty of new stuff right here!
    Best of luck for the following!

    my blog real Estate acapulco mexico

    ReplyDelete
  33. We're a gaggle of volunteers and opening a brand new scheme in our community.

    Your website provided us with valuable information to paintings

    on. You've done a formidable process and our entire

    community will be thankful to

    you.

    Feel free to surf to my website :: Groovaz.com

    ReplyDelete
  34. It is appropriate time to make some plans for the long run

    and it's time to be happy. I have read this put up and if I

    could I desire to recommend you some attention-

    grabbing issues or suggestions. Perhaps you could write next articles

    relating to this article. I wish to learn even more

    issues approximately it!

    Feel free to surf to my blog: creativecommunity.altervista.org

    ReplyDelete
  35. I am really enjoying the theme/design of your website.

    Do you ever run into any

    browser compatibility problems? A small number of my
    blog readers have complained about my website
    not operating correctly

    in Explorer but looks great in Safari. Do you have any
    suggestions to help fix this issue?

    my blog http://clickforu.com/

    ReplyDelete
  36. Definitely, what a splendid site and informative posts, I
    surely will bookmark your blog.Best Regards!

    My web-site - stratford.com.mx

    ReplyDelete
  37. I and my buddies came looking through the nice helpful

    hints from your site then quickly developed an awful suspicion I
    had not thanked the website owner for those secrets. These people

    had been so very interested to read all of them and already have undoubtedly been using these things.

    Thank you for indeed being considerably accommodating and also for

    figuring out this kind of beneficial resources most
    people are really needing to learn about. Our honest apologies for

    not saying thanks to earlier.

    Take a look at my site ... aai.cz

    ReplyDelete
  38. Wow! This can be one particular of the most useful
    blogs We've ever arrive across

    on this subject. Actually Excellent. I'm also a

    specialist in this topic so I can understand your effort.


    my blog :: chatgamers.com

    ReplyDelete
  39. I simρly could not gо awау youг sitе prior to suggesting that I
    extremely enjoyed thе standard іnformation а peгson supply on your visitoгs?
    Is gonna be again fгequently to check out neω
    postѕ

    Аlso visit my ρаge ... Lloyd Irvin

    ReplyDelete
  40. Wе аre a grouρ of νolunteers and starting a brand new ѕcheme in our community.

    Your site provіdeԁ us with valuable info to worκ on.
    You hаve dоnе аn іmρгessіve task and our entiгe neіghbогhood ωill
    pгοbably be thanκful to уou.


    Feel free to visit my ωebpagе reputation management

    ReplyDelete