This Forum is now inactive and has been replaced by a new Christogenea Forum. You may browse here but there are no updated threads or new posts since January 1st 2017. Forum members please see THIS NOTICE for information concerning your account at the new forum.

"The Mortgage Forgiveness Debt Relief Act" Ends in 2013

Discussions about current events

"The Mortgage Forgiveness Debt Relief Act" Ends in 2013

Postby Hunter » Sun Jun 30, 2013 3:37 am

"The Mortgage Forgiveness Debt Relief Act" in the USA will be coming to a close at the end of 2013. This is the harbinger of death for the real estate industry and the so-called "housing recovery" in the US. I believe this will come on the heels of rapidly rising interest rates - which is already being evidenced by a quickly rising yield of the US 10-year note or bond, as of late.

Below are some links which will provide some important overview in regards to the purpose and intent of the Mortgage Forgiveness Debt Relief Act. The economic ramifications of it's discontinuation should be obvious. It will kill all the short sales which have been generated through, and since, it's implementation in 2007, and especially by it's extension in 2012. This has helped in stalling the staggered US housing market from utterly collapsing, along with low interest rates and other aiding factors. Equally important, many will become indebted to the I-R-S for the forgiven/uncollected balance of a mortgage, after a foreclosure, because it will then be considered taxable income once again. (FYI: The I-R-S has 'fortuitously' bought 174,000 of rounds of "hollow point" ammunition for "training sessions". http://www.foxnews.com/politics/2012/08 ... purchases/)

http://www.irs.gov/Individuals/The-Mort ... cellation-
"If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

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.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion..."


http://www.prweb.com/releases/mortgage- ... 286858.htm
"McGeough Lamacchia Realty reports that Congress passed a bill, The American Taxpayer Relief Act of 2012, as part of a deal to avert the so-called fiscal cliff. This legislation includes extending the Mortgage Forgiveness Debt Relief Act through December 31, 2013. The law impacts homeowners who are granted principal forgiveness on their loan, due to a short sale, a deed-in-lieu of foreclosure, or have lost their home to foreclosure.

Under the federal tax code, all types of forgiven debt are treated as income, subject to regular taxes. Because of the Mortgage Forgiveness Debt Relief Act, homeowners who get their mortgage debt forgiven through either a short sale or loan modification won’t be taxed on the amount forgiven up to $2 million.

The amount of forgiven debt is the difference between the amount a homeowner owes on his or her mortgage and the amount the mortgage company receives after closing..."



http://www.expertclick.com/NRWire/Relea ... x?id=42861
"On January 1st, Congress passed the American Taxpayer Relief Act of 2012. Part of this Act is a one year extension for the Mortgage Forgiveness Debt Relief Act. Created in 2007, this act granted exemption from income tax to homeowners who had all or a portion of their mortgage debt on a primary residence forgiven through a waiver of deficiency as part of a short sale or foreclosure. Without the act, the forgiveness of mortgage debt is called debt discharge income and is treated similarly to ordinary income by the IRS.

Experts worried that if the Mortgage Debt Forgiveness Act, originally passed as part of the Bush tax cuts, was not extended that homeowners might elect to walk away from their upside down properties rather than seeking loan modifications, short sales, or other alternatives to foreclosure. This could have spelled trouble for the fledgling housing recovery that has..."
User avatar
Hunter
 
Posts: 147
Joined: Thu May 23, 2013 3:26 pm
Location: Canada (in the prairies)

Re: "The Mortgage Forgiveness Debt Relief Act" Ends in 2013

Postby Nayto » Sun Jun 30, 2013 12:45 pm

To hell with the debt-based economy in general.
Nayto
 
Posts: 1151
Joined: Tue Jul 17, 2012 6:06 am

Re: "The Mortgage Forgiveness Debt Relief Act" Ends in 2013

Postby wmfinck » Mon Jul 08, 2013 5:52 pm

Not for nothing, but when I was in law enforcement, we had to qualify twice a year with every gun we would carry. That includes one department issue weapon, and each one of our own. The department supplied qualification ammo for its own weapons, and I am pretty sure it was a hundred rounds each officer each time. For a four hundred and fifty man department, which it was, that is ninety thousand rounds a year, just to satisfy state training laws. I would bet the IRS has similar regulations. That much ammo is a paltry sum, on the grand scale of things. Just wanted to put that into perspective.
Image
If a jew is moving his lips, he's lying. If you see a rabbi, there has already been a crime!
User avatar
wmfinck
Site Admin
 
Posts: 2775
Joined: Fri Jul 03, 2009 2:09 am


Return to Current Events

Who is online

Users browsing this forum: No registered users and 0 guests

cron