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SOURCE: Americas Watchdog 5
The Homeowners Consumer Center is now warning If the US Congress, and President Obama fail to extend the Mortgage Forgiveness Tax Provisions that are set to expire at the end of 2012-there could be a mass exodus of US homeowners, who owe more on their home than it is worth. The Homeowners Consumer Center says, "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 will get much, much worse-not better." http://HomeownersConsumerCenter.Com
(PRWEB) November 19, 2012
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 tax 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 must do-extend this now." http://HomeownersConsumerCenter.Com
Important Note from the Homeowners Consumer Center:"Who should be worried about Congress, and the Obama Administration failing to extend the Mortgage Debt Forgiveness Tax Provisions? Answer: All US homeowners who owe more on their home than it is worth, all US real estate agents, all US Certified Public Accountants, all US tax planners, all US bankruptcy attorneys, all US banks, or mortgage lenders, all investors that own mortgage back securities, and all US homeowners who understand a sudden surge of millions of US homeowners walking away from their homes in December of 2012 further devalue the already hard hit US residential real estate markets." 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? What happens to the 22.8% of all US homeowners, who are upside down on their home 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 2013? At this moment we are saying if the US Congress, and the Obama Administration do not wake up now, 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
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