Mortgage Debt Forgiveness Survives Fiscal Cliff Settlement

In a last minute – okay, more like a “well after the last minute” deal struck by the US Congress, a key provision protecting borrowers losing their homes was extended for one more year. The Mortgage Forgiveness Debt Relief Act of 2007, which technically expired on December 31, 2012 was extended to December 31, 2013 as a part of the legislation approved yesterday to pull us back from the “Fiscal Cliff.” For those not familiar with the Act, under normal circumstance is a debt owed is forgiven by the lender, it results in a taxable event for the borrower. By way of example, if I borrow $1,000 from a lender, and I don’t pay it back AND the lender agrees to forgive that debt, I am deemed to have “forgiveness of indebtedness income” which is generally subject to being taxed. However, as will all things “tax,” there are loopholes. Bankruptcy…

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An Interesting Perspective On The Housing Recovery

An article written by Orlando Realtor® Judy Chapman on her “Orlando For Sale” blog caught my eye the other day. The article, which had a follow-on, described in the context of realistic appreciation expectations, how long a homeowner may expect it to take for their home’s value to return to the height of the market values. In the case of Orlando property, she projects that it could take more than 10 years for values to return to their high point from 2007. So, being curious, I performed the same little analysis on Orange County, California home values [more . . .]

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