Fiscal Cliff Deal Favors Housing Recovery

Fiscal Cliff Deal Favors Housing Recovery

The housing market is on firmer ground today, as two major tax provisions survived the “fiscal cliff”. Congress did not touch the mortgage interest deduction, and it extended tax relief for one year on mortgage debt forgiveness.
Under a law signed in 2007, debt relief on loan modifications, short sales, and foreclosures were no longer taxable; that break expired at the end of 2012. The new law will extend it for one year.
Borrowers have received $6.3 billion in mortgage principle relief through September, according to the settlement’s moniter, Joseph A. Smith Jr. The average loan balance reduction was $150,000.
The “fiscal cliff” deal also allows borrowers to deduct the amount they pay for private mortgage insurance, which has become increasingly prevalent in todays tighter mortgage market.

comments

Barbara Reaume

Barbara Reaume is a real estate expert working for Coldwell Banker Montecito. She started her career as a real estate agent in 1984 and offers over 3 decades of experience in real estate sales. Specialties include Montecito real estate, Santa Barbara real estate, Santa Barbara homes, real estate financing In Santa Barbara, Montecito relocation, Santa Barbara relocation, short sales and foreclosures. Do you have specific questions about buying or selling real estate in the Santa Barbara area? Ask to be setup on Barbara's email-based home search to get instant alerts on price reductions and new Santa Barbara homes for sale in the area. Contact Barbara Reaume by email ([email protected]), phone (805-610-5403) to find out the value of your home, discuss your options. Connect on Google+ https://plus.google.com/103753350598984606081/about

No Comments

Leave a Comment