Posted on 11/30/2012 2:13:34 PM PST by Lorianne
A “foreclosure tax” that would take effect in 2013 could mean a high tax bill for those facing foreclosure and millions of families who modified their mortgage or had a short sale through their lender.
National Association of Realtors in a blog on its website
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In Washington, much of the political conversation these days surrounds a “fiscal cliff” of tax increases and drastic budget cuts that could ignite another economic recession if lawmakers don’t reach a compromise on such issues before this year ends.
One organization, though, recently raised its concerns about another piece of federal legislation and its potential impact on many American homeowners if Congress doesn’t act before Dec. 31.
The National Association of Realtors posted an item on its Realtor Party webpage with a “Call for Action” about a law set to expire this year. A PolitiFact Georgia follower on Twitter asked us to check out the accuracy of the information.
“Congress will soon return to Washington with unfinished business to complete. One of those items is a housing issue that could affect almost one-quarter of all real estate transactions — the expiration of Mortgage Forgiveness Tax Relief,” the webpage says.
(Excerpt) Read more at ajc.com ...
This administration will stop at nothing to make sure everyone and I mean EVERYONE is hurting to the point where they are willing to go on the gov’t dole and be paid for.
Add the Student Loan debacle to this and you have a recipe for national disaster and ultimately a global financial meltdown. Cloward and Piven would be so proud of their little munchkin.
Some DEM in the House is trying to introduce a bill that would allow TOTAL forgiveness of college loans after 10 years ...
Isn't this why Obama was elected?
Hypothetical: So if you worked at McDonald’s and claimed you could afford a $500,000 house, because you went with a no document loan your mortgage application was then approved, and you have now stopped making mortgage payments, but still live in the same house for free, because your adjustable rate mortgage has adjusted upward.
now this administration is forcing the Bank who made this loan to you to forgive $250 thousand and reduce the interest rate to 5 percent, and you are whining that you have been mistreated and the government should forgive the tax you owe on the $250 thousand loan principal reduction you now have received.
give me and the other poor slobs who bought only as much house as we could afford a break. obviously these kind of folks are those who voted for Obama and want the rest of us to pick up the tab for their foolhardiness.
This more than likely will increase bankruptcy filings which is the only protection for those facing foreclosures and owe more than what the property is worth.
It won’t pass. The federal government will never give up such a big stream of payments, or, more importantly, its stranglehold over student loan borrowers.
I think you’re probably right. Debt discharged in bankruptcy is not taxable as income. Bankruptcy filings will also probably increase in the fall of 2013 because the people who declared bankruptcy just before BACPA went into effect in October 2005 are going to be eligible to file again.
Just a prelude to when all education is "free", the government writes the check and the colleges take pennies on the dollar - very similar to ObamaCare...About that time, the college "perfessers" will stop adoring the "liberals" because they'll not be getting all the perks from outrageous tuitions.
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