Relief for Financially Strapped Naples Florida Homeowners
An estimated 2 million to 2.5 million adjustable-rate mortgages will have higher rates this year and next. Prepayment penalties are making it difficult for homeowners to refinance, and in some cases; repay their mortgages.
Many homeowners can’t afford or are not eligible to refinance or sell their homes due to higher lending standards and falling home and condo prices.
Currently mortgage debt forgiveness for foreclosure or renegotiation of home and condo loans is considered as taxable income.
On October 5th, the House approved legislation to help homeowners facing foreclosure or bankruptcy.
No taxes would be owed on the value of any debt forgiven or written off.
“I urge the Senate to swiftly consider this legislation and make it temporary”, President Bush said in a statement.
The White House is considering this bill, but only temporary relief for three years.
The Mortgage Bankers Association expressed strong support for the bipartisan tax-relief bill.
I expect Short Sale homes and condos will significantly increase now that the fear of 1099 taxable income will no longer be a haunting threat.