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What Mortgage Forgiveness Tax Relief Means to the Real Estate Recovery

As taxes are being weighed in Congress, tax relief on mortgage forgiveness is set to expire at the end of the year

According to the IRS, if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be considered taxable income. The Mortgage Debt Relief Act of 2007 was enacted to allow taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a short sale or a foreclosure, qualifies for the relief.  This Act is set to expire at the end of 2012. As home prices spiraled downward and millions of homeowners became underwater on their mortgages (owing more than their homes were worth) during the housing crisis, this measure was needed so consumers who were already financially devastated could pick up …

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Foreclosure Dogs

Lisa Loper of the Scott Loper Team looks at the unexpected victims of the foreclosure mess

A very sad unexpected victim of the recent housing and economic downturn are pets.  According to a report by MSNBC, the number of dogs left at shelters by loving owners has rose 25 fold in the last few years.  “Their pet is the last thing someone wants to give up,” said a spokesman for the Humane Society. But difficult financial times and people losing their homes has forced many pet owners to give up their animals as the owners move into apartments or with family.  And as financial aid and donations to animal shelters has dropped, the shelters are feeling the pinch. What can you do?  If you are thinking about getting a dog or a cat, consider visiting a local shelter.  Mixed breeds do make wonderful pets, but for anyone seeking a pure bred…

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Are We at the Bottom Yet?

Getting a great deal on a home is not just about the price of the home, but more about the costs to purchase

You’ve read and heard a boatload of news on current home prices. Each time you hear it you’re wondering whether we’ve reached “the bottom.” Sound the gong!  Someone said “the bottom”!  In our region, many experts believe we are near bottom prices, if not already there.  One of the ways this is determined is to look at the percentage of distressed properties on the market.  A distressed property is defined as a home in foreclosure or that is bank owned. It is these kinds of homes that bring down the value of non-distressed properties. In Pennsylvania, the distressed property rate is 17 percent, as of last month.  We are in better shape than most states.  Only Iowa, New Mexico, South Dakota and Alaska have fewer distressed properties.  That …