Carlsbad, CA (PRWEB) January 13, 2008
A well known internet foreclosure information source, iforeclosureinfo.com, has made predictions for 2008 foreclosure market based on how the business performed in 2007. Previously, the company stated that the lending industry lacks that power to help all borrowers. This is causing a pressing need for a change in federal law that would allow courts to modify mortgage loans. Iforeclosureinfo.com strongly urges supporters to advocate for this type of change, saying that their business would benefit, as borrowers would be able to pay off more loans.
Both chambers of congress have passed legislation increasing the availability of a federal program that helps troubled borrowers refinance into fixed-rate loans. The FHA also allows companies, like iforeclosure, to make loans they otherwise wouldn't be able to by paying the lender if the borrower cannot. Unfortunately, there is a minimum threshold that they can promise. This prevents many people from avoiding foreclosure. There have been ideas to increase the threshold, but that has yet to take place.
In 2007, the federal government passed one law addressing foreclosures. The Mortgage Forgiveness Debt Relief Act reduces income taxes for some foreclosed families. If a person bought a home for $100,000, and owed $110,000 at the time of foreclosure, the foreclosure wipes out the entire debt. The government previously viewed the difference between the debt and the value of the home as taxable income. Now it does not.
With election year now upon us, iforeclosureinfo.com has been watching closely as the foreclosure market continues to face changes. For more information on foreclosure activity and the housing market, visit http://www.iforeclosureinfo.com.
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