After Hr 3648 passed The House in October 386 to 27, it went on to The Senate and passed 93 to 1. The only thing left is the White House and the President who asked for the legislation. This bill will give dept forgiveness to those who has lost there primary residence in a foreclosure. The debt that will be forgiven is the amount deficient to pay off their note after the property has been liquidated either by the bank, or in the sheriff’s sale, or the court house auction like here in Osceola County Florida. This dept forgiveness will also pertain to those homeowners that have a deficiency after a short sale.

The legislation will help the Federal Housing Administration “be a source of salvation for those families who were tricked into unaffordable loans,” said Sen. Charles Schumer, D-N.Y.

Currently, the deficient amount is reported to the Internal Revenue Service as a gift from the lender. Where as the IRS taxes the homeowner on the gift amount.

This is good legislature, I feel that if someone couldn’t pay their mortgage, how are they suppose to pay a tax lien? This bill will stop this malicious practice.

Again, this is for a primary residence. NOT AN INVESTMENT PROPERTY!

So, we have seen our government, have mercy on those that have lost their home by not taxing them on their lose. Stopped the subprime adjustable rate mortgages from adjusting for 5 years to decrease the foreclosure rate. Then get the FHA to refinance those subprime adjustable rate mortgages. I feel that these are strong moves to save the banking industry,save the housing market, and overt a recession.

The Resident Mark

www.ResidentTeam.com