Homeowners Consumer Center Warns All US Homeowners About A Huge Issue Facing Them On January 1st 2013 -AKA- The Mortgage Debt Forgiveness Tax Provisions - Help Wanted

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The Homeowners Consumer Center is now warning that without a Congressional, and Obama Administration extension of the current mortgage debt forgiveness federal tax provisions for homeowners who do a loan modification, a short sale, a deed in lieu, or go through a foreclosure, and receive a principal reduction in what they owe their lender anytime after December 31st 2012- the homeowner is going to get hit with a federal tax bill. The principal reduction received by the homeowner after December 31st 2012 will be treated as income by the US IRS. The Homeowners Consumer Center says, "We fear if the US Congress does not move quickly to extend the mortgage debt forgiveness provisions immediately, we could end up with a stampede of US homeowners walking away from their homes prior to December 31st 2012-with the net result lower residential real estate prices nationwide, that are caused by a tidal wave of new home foreclosures-or in this case deed in lieu of foreclosures. We'd call this a disaster, for the US housing markets, the US economy, and for all US homeowners. We'd also call it a bipartisan no-brainer-extend this now." http://HomeownersConsumerCenter.Com

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We are saying if the US Congress, and the Obama Administration do not wake up, and extend the Mortgage Forgiveness Tax Provisions now-we are going to have a really big mess on our hands

The Homeowners Consumer Center is one of the premier advocates for US homeowners, and the group is warning things are about to get much more complicated for the US housing market, and all US homeowners if the US Congress, and President Obama fail to extend the Mortgage Forgiveness Tax Provisions. Without an extension, borrowers who receive reductions in mortgage principal next year in the process of a short sale, loan modification, foreclosure, or deed in lieu of foreclosure would be hit with federal income taxes at their regular marginal rates on the amounts forgiven. The Homeowners Consumer Center says, "The US housing market needs stability. We do not think most current underwater US homeowners realize that without this tax provision extension they, or their neighbors are about to get hit with what could be a gigantic federal tax bill, should they do a short sale, a loan modification, or a deed in lieu of foreclosure-that involves a mortgage principal reduction in what they owe their mortgage lender. Without an extension of this bill, anytime after December 31st 2012, if a homeowner receives any type of principal reduction from their mortgage lender-they are going to be taxed by the IRS on whatever the principal reduction was-as if it was income. Without an immediate extension of this legislation we fear the US housing market gets much, much worse-not better. How is that Forward?" http://HomeownersConsumerCenter.Com

On March 1st 2012, CNN Money wrote, "The number of homeowners who have fallen underwater on their mortgages-owing more than their homes are worth -- climbed to 11.1 million in the last three months of 2011, a 3.7% increase. Those in this upside-down position, also called negative equity, represent 22.8% of homeowners with mortgages. The count rose from 10.7 million borrowers (22.1%) only three months earlier, according to a report from CoreLogic." The Homeowners Consumer Center says, "Since the re-election of President Obama has anyone else noticed the lay off notices being mentioned in the business sections of many US newspapers? We have, and lay off notices, are not a good thing for consumer confidence. What happens to the 22.8% of all US homeowners, who are upside down on their mortgage when they all of a sudden realize if they don't walk away from their homes now-they might get taxed on a principal reduction in the future? Given the Fiscal Cliff our nation faces on December 31st 2012, everyone should be worried about the US Senate majority's push for higher taxes on the quote rich, what this will mean to the fragile US economy, small businesses, and US employment. However, at this moment we are saying if the US Congress, and the Obama Administration do not wake up, and extend the Mortgage Forgiveness Tax Provisions now-we are going to have a really big mess on our hands, and its going to start long before December 31st 2012." http://HomeownersConsumerCenter.Com

Note from the Homeowners Consumer Center, "We know there are many US homeowners out there who do not feel like homeowners who are upside down on their mortgages should get any breaks at all-we get that part. However, the reality is if we have a new tidal wave of instant deed in lieu of foreclosures-where the homeowner sends their keys back to the mortgage loan servicing company, all US homeowners get hammered with lower property values. We do not think anyone in their right mind would want that." http://HomeownersConsumerCenter.Com

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M Thomas Martin
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