Mortgage Debt Forgiveness: It’s All About Fairness

In his latest video, NAR President Steve Brown explains why NAR supports an extension on mortgage debt cancellation relief. Take a look.

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Comments
  1. Harold Hicks

    What is it that congress dose not understand, that it was the banking industry which
    create the problems with the products they put on the market that essculate false prices & values. Sale of houses generates, stimulates and strength the entire economy of the couuntry. What is it not to understand.

  2. We need Congress to extend this Act. Jacksonville, NC, and all the communities of Onslow county are adjacent to Camp Lejeune Marine Base, a large MarinUSMC and Naval base, as well as, Marine Corps Air Station New River. We here are just starting to see what most of the nation saw a few years back. The recovery is not anywhere in site as we are getting listings daily that will be short because of the current market. The bases are building new base housing and discouraging our military service members from buying or renting off the base. This is not doing a service to the military service members who have been PCS to another base or have been discharged or gotten out of the military. They are being stuck with a home that has to be sold short or go into foreclosure.

  3. Not extending the mortgage debt forgiveness would utterly destroy the present , if slow , housing market recovery and take us back to where the bottom was , by increasing the foreclosures and dragging the prices down once again.

  4. Nancy Miller

    I have not worked in a year. I hurt my legs and I can not walk. My husband has had very little work and we can not pay any of our bills. No one wants to work with us or even try to understand. We are now this month 2 months behind on our mortgage and the 3 rd month they want to foreclose. I do not want to loose my house. Is there any help out there that I can get?

  5. linda bone

    I have my own home @1610 Indiana Ave. Palm Harbor, Fl. 34683 and 12507 Cavalier Ct. Hudson Fl. 34669. both these homes are in foreclosure. There is no sense in doing a short sale on either of these homes if I am not going to get a debt cancellation. Since it takes a few years to foreclose I am better living in for free my home and renting my investment home in Hudson to cover back HOA’s.

  6. You have it wrong Steve. This is NOT about fairness, it’s about income distribution and the enabling of the entitlement generation in such a way that erodes the sense of responsibility and self-sufficiency this country was built on. If the American citizen can create an action without risk to themselves then we are going to continue to shift this country further towards socialism and if you know anything about history I’m sure you understand where that will lead.

  7. Janet Cox-Petersen

    As a REALTOR who personally went through economic distressed and decided to short sale my home, I can tell you that it is a far better alternative than a foreclosure. The short sale process is stressful and takes time and the last thing I wanted to face was being penalized by the IRS on the difference in what I sold my house for and what I owed on the mortgage. I was more than $100,000 upside down with no immediate relief in sight; it would seem to me that Congress needs to know that it takes a commitment for a homeowner to decide to short sale rather than just walk away. I also work on short sale files and can tell you that they are difficult to get to closing and I would like to see the financial institutions be more up to speed on the process of the trend. Please count me in on pushing Congress to extend the cancellation of debt. Thank you.

  8. Jim Griebat

    I have heard there will be legislation introduced that will eliminate the interest deduction. This is information that every home owner should be aware of when it is proposed. When and if this legislation is proposed, I would like NAR to not only send out emails to its members so we can forward our protests and concerns to our congressmen, but I would also like NAR to make it so we can forward this information on to our clients and make it easy for them to protest this legislation.

    I have dozens of clients that would take up the cause and protest this legislation if we could simply make it easy for them to be able to point and click on their computers and be able to protest this legislation to their own representatives. Please make this available so we can easily get our clients involved with this landmark mistake of proposed tax reform.

    Sincerely,
    Jim Griebat-Broker
    303-466-6900

  9. NAR

    Nancy,
    You can contact your local REALTOR® association to find a REALTOR® with expertise on short sales and foreclosures. They will be able to provide information about the options available to you. Also, visit hopenow.com, a web site that provides information to homeowners in distress. The site also provides a toll-free Homeowners HOPE™ Hotline – 888-995-HOPE that connects you to HUD-approved credit counselors.

  10. Eva

    Please do everything you can to extend the Mortgage relief Law this year. For anyone in Wisconsin I’m here to help homeowners in distress to work with them in short sale program that is by far better than a foreclosure in the record or for our cities and neighborhoods. If you maintain your credit, you will be able to purchase again in two years.

    Sincerely,

    Eva T / Realtor & Short Sale Specialist
    414-379-6952

  11. See IRS Publication 4681 which describes other potential methods of avoiding taxes on forgiven debt. I just closed a short sale transaction this week and the Seller is not going to have to pay tax on the amount of the forgiven debt because he was insolvent at the time of the short sale, meaning he owed more money than he had assets. Prior to closing I had my Seller speak with an accountant who confirmed this and explained this IRS rule to him.

  12. Rick Cuneo

    It is unfair for homeowners that work hard and have enough pride to make their payments to have people who behave otherwise and get off easy. NAR is not looking at personal responsibility as a good thing only encouraging the easy out thinking there will be more sales if it is easier for people to get out of paying back money they borrowed and agreed to pay back.

    There are plenty of people that should not sell and stay where they are if they are underwater and cannot fix their situation the right way. The program usage has increased only because it has become more normal and easier for people to get out of paying back money they owe someone. Encouraging Short sales is very poor for the market prices and just causes hard ship for people wanting to sell next door to someone who just dumped their house on a short sale.

    This is a sad commentary on how people have come to believe it is OK to do something that is wrong as long as there is a means to do it. What if you borrowed money to someone under a legal agreement and they didn’t pay you back? This sort of thinking and legislation is proving to be a down fall for our industry and country country as a whole.

  13. Tiffany Kilcoyne

    My primary concern is that I’m not sure why the Feds are involved in peoples’ phantom income in the first place. They aren’t losing money or backing the loans, mortgage companies are. It’s really none of their business who short sells their home or not. It’s not their money they are lending but yet somehow they justify the need to tax people on it. It makes no sense to me and they tax us enough. Keep your head where it belongs. Don’t get involved in real estate business that you know nothing about. I have two clients ready to let their house got to foreclosure sale because of the stupid phantom income law. How’s that working out for the additional tax income the Feds hope to get?

  14. I have been having difficulty for the past five years paying my mtg ! I have 2 small side jobs and thank goodness for overdraft protection ! I broke my leg in 5 places 5 yrs ago going to warm my car up at 4:15 am to go to work ! I have more & more difficulty getting around due to much pain and it has caused other limitations due to my gait & balance off ! I took on two mtg when I bought my condo in 2006 ! The 1st mtg is for 111,000and @ 6.75% adj rate interest only and the 2nd mtg is for 20,000 at 11.12% fixed ballon interest only ! The two worse mtg s anyone could have ! Why would they sell such garbage , set you up to fail ! I truly was not in sound mind ! Nor did I understand any of it ! I am in end stages if a short sale and I can’t tell you what a awful experience it has been for me ! That the lender has the right to immediately do a auction to expedite the process and let it go for 47,500.00 to leave me with a deficit of 83,500.00 that I am liable to pay in debt forgiveness to the IRS ??? How does this help homeowners who are not able to keep up with their bills , because of everything going up due to the economy , I guarantee your wages that you work hard for do not go up to stay afloat ! Where and how do you get ahead ? This liability to the IRS who wants this added stress ? The system is so wrong ! Why not sell my home plain & simple regular sale at FMV ? The system is not designed to help the American people but only to help the corrupted system that nobody knows what end is up and why ! Organized chaos !

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