Saturday, February 8, 2025
41.5 F
Roseville

Mortgage Debt Relief

With the growing number of homeowners having difficulty making mortgage payments and faced with homes that are now not worth as much as they owe we are seeing an increase it short sales. This is where a homeowner attempts to sell the home and then convince the lender to take less than they are owed. We just received approval from a lender to move forward on one of my listings. What you may not know about these arrangements is that the homeowner must pay taxes on the amount of debt forgiven just like it was income.

Last week the House Ways and Means committee approved a bill that would relieve taxpayers of the liability due to mortgage relief. Not a law yet, but it appears to be moving through the legislative process and should be finalized soon and be retroactive to January 1, 2007.

The bill (H.R. 3648) would establish a permanent exclusion from gross income of discharged home mortgage indebtedness despite Republican reservations over the offset.

Committee ranking member Jim McCrery (R-La.) expressed support for the tax relief, saying it is necessary to help put the American housing market back on track, but said he is opposed to pay-as-you-go rules that result in taxes being raised in one area to pay for relief elsewhere.

The nearly $2 billion bill is paid for with a provision whereby the gain from the sale or exchange of a principal residence allocated to periods of nonqualified use is not excluded from gross income. Currently, individual taxpayers may exclude up to $250,000 ($500,000 if married filing a joint return) of gain realized on the sale or exchange of a principal residence.

McCrery and other Republicans expressed reservations about the reach of the provision and its impact in certain markets around the country, but McCrery said endorsements from the National Association of Realtors, the National Association of Home Builders, and the Mortgage Bankers Association “helps alleviate” his concerns.

Some Republicans also questioned why the bill creates a permanent exclusion and does not follow the three-year plan recommended by President Bush, but a Treasury Department official testified that the administration supports moving forward with this bill.

The legislation also would extend for seven years the deduction for private mortgage insurance and would modify the qualification tests for cooperative housing corporations.

Julie Jalone

Julie Jalone of Magnum One Realty in Roseville

If you or someone you know is considering buying, please feel free to contact me MagnumOne Realty office in Roseville at (916) 276-6883 and email at [email protected].

We specialize serving the needs of buyers and sellers of homes in the Roseville and Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.

DRE# 01418097



Brighter Side

Trending

Roseville Today Super Bowl party picks for Eagles and Chiefs game

Roseville, Calif.- This Sunday at the Superdome in New Orleans, the Philadelphia take on the Chiefs in Super Bowl 59. A super-sized rematch and unofficial national holiday of $8 million dollar commercials, food and drink and a little football.

Quarry Oaks Apartments in Rocklin

Quarry Oaks Apartments in Rocklin, Calif.

All American Sweeping Co. in Roseville

All American Sweeping's objective is to provide personalized customer service with an emphasis on professionalism, communication, responsiveness and quality at a fair price

Roseville welcomes US Quadball West Coast National Qualifier this weekend

Roseville, Calif. - Quadball, an action-packed sport that evolved from the Harry Potter novels, will hold its only West Coast national qualifier Saturday, Feb. 8, and Sunday, Feb. 9 at Maidu Regional Park in Roseville.

Lowest Gas Prices in Roseville, Rocklin, & Lincoln

Roseville, Calif. - Gas prices continue to push higher above the $4 per gallon mark at many locations around South Placer County. Roseville consistently remains the low price leader while Rocklin and Lincoln residents consistently pay higher energy costs across the board.

Topics

Roseville Today Super Bowl party picks for Eagles and Chiefs game

Roseville, Calif.- This Sunday at the Superdome in New Orleans, the Philadelphia take on the Chiefs in Super Bowl 59. A super-sized rematch and unofficial national holiday of $8 million dollar commercials, food and drink and a little football.

Quarry Oaks Apartments in Rocklin

Quarry Oaks Apartments in Rocklin, Calif.

All American Sweeping Co. in Roseville

All American Sweeping's objective is to provide personalized customer service with an emphasis on professionalism, communication, responsiveness and quality at a fair price

Roseville welcomes US Quadball West Coast National Qualifier this weekend

Roseville, Calif. - Quadball, an action-packed sport that evolved from the Harry Potter novels, will hold its only West Coast national qualifier Saturday, Feb. 8, and Sunday, Feb. 9 at Maidu Regional Park in Roseville.

Lowest Gas Prices in Roseville, Rocklin, & Lincoln

Roseville, Calif. - Gas prices continue to push higher above the $4 per gallon mark at many locations around South Placer County. Roseville consistently remains the low price leader while Rocklin and Lincoln residents consistently pay higher energy costs across the board.

Beryozka – European Market in Rocklin

Beryozka European Market in Rocklin, Calif.

El Burrito Taqueria in Roseville

El Burrito Taqueria in Roseville. Our goal is to provide a fantastic experience for our guests. We use the best ingredients to create all of our authentic Mexican dishes.

Bio-identical hormone replacement therapy

As we age, we approach the "pausal" years. For women, it's known as Menopause. For men, it's known as Andropause. During these transitional times in life, it's as if the sex glands go into retirement and there can be a lot of changes,

Related Articles

Local Spotlight

Paul Black’s Solar Panel Cleaning in Roseville serving the region for over 30 years

Roseville, Calif. - Money-saving solar panels in Roseville, Rocklin and throughout South Placer County have become ubiquitous From new residential solar communities continue to big business and after market installation, solar seems to be a smart choice to shred those high monthly electric costs.

Making a Splash in Roseville at Steve Wallen Swim School

Roseville, Calif. - Steve Wallen Swim School in Roseville teaches swim lessons and water safety for infants, kids, and adults of all skill levels.

Stanford Ranch Family Dentistry in Rocklin serving the local community since 2000

Rocklin, Calif.- For nearly 24 years, Jason and Heather have grown their successful Stanford Ranch Family Dentistry practice by faithfully serving patients throughout the Rocklin, Roseville, and greater South Placer County region. Their business has grown to now employ over a dozen employees which helps them meet the growing demands of a successful local business.