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Mortgage relief faces a tax-law nightmare

February 22, 2012

Mortgage relief faces a tax-law nightmare

Given the huge public and private resources now being devoted to helping financially distressed homeowners — including the recently announced $25 billion national mortgage settlement with five major banks — you might assume that a key federal tax-law benefit underpinning these efforts would be a shoo-in for renewal.

But it’s not. The Mortgage Forgiveness Debt Relief Act is set to expire in 10 months, and there are early indications on Capitol Hill that it might not make the cut. The law, first enacted in 2007, allows homeowners who have received principal reductions on their mortgages as the result of loan modifications, short sales or foreclosures to avoid income taxation on the amounts forgiven.

Obama proposes broader housing refinance plan

February 1, 2012

Obama proposes broader housing refinance plan

President Barack Obama called on Congress Wednesday to make it easier for millions of additional homeowners to refinance their mortgages at lower interest rates even if they owe more than their homes are worth. He conceded that his administration’s housing plans have not lived up to their promise.

Calling the housing problem “massive in size and in scope,” Obama detailed a proposal he outlined in his State of the Union speech last week, tackling an issue of vital concern in states key to his re-election.

“This housing crisis struck right at the heart of what it means to be middle class in America: our homes,” Obama said, speaking at a northern Virginia community center.

Obama’s proposal would give homeowners with privately held mortgages a shot at record low rates, for an annual savings of about $3,000 for the average borrower.

Proposed bill would protect residents selling their home

January 26, 2012

Proposed bill would protect residents selling their home

If you’re under water in your mortgage and thinking about selling your home for a loss, a new bill from 46th District Sen. David Frockt aims to give you some extra protection.

The bill would require banks to choose between two options, either selling off the debt they didn’t recover from the home sale or taking it as a tax write-off, rather than the common practice of doing both.

“What we do in this bill is essentially provide the same type of protection to homeowners who are not yet in foreclosure but are at risk for foreclosure,” Frockt said.

$25 billion mortgage deal goes to states

January 23, 2012

$25 billion mortgage deal goes to states

The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices drove homeowners out of their homes, government officials said Monday.

A draft settlement between the banks and U.S. states has been sent to state officials for review.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. About 750,000 Americans – about half of the households who might be eligible for assistance under the deal – will likely receive checks for about $1,800.

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

January 19, 2012

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

The government and banks are “very close” to reaching a legal settlement over alleged foreclosure abuses that could help about 1 million underwater borrowers get mortgage relief, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday.

“We’re very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help,” Donovan said in response to a question during a forum at the Winter Meeting of the U.S. Conference of Mayors in Washington.

Talks between federal and state officials and major lenders aimed at resolving allegations of illegal foreclosure practices have dragged into their second year.

Mortgage relief faces a tax-law nightmare

Obama proposes broader housing refinance plan

Proposed bill would protect residents selling their home

$25 billion mortgage deal goes to states

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

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Mortgage relief faces a tax-law nightmare

Obama proposes broader housing refinance plan

Proposed bill would protect residents selling their home

$25 billion mortgage deal goes to states

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

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