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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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Why the Pricing of a Home Matters

Lisa Loper of the Scott Loper Team looks at the correlation between days on market (DOM) and how it affects the final selling price of a home.

Now, more than ever, buyers are looking first and foremost for a deal.  The longer a home sits on the market, the greater the tendency for buyers to offer lower prices.  It’s only logical.  Even on Day 1, most buyers will want to offer less than the asking price.  But if a house has been on the market for months, there is no doubt buyers will tend to offer prices at much steeper discounts. The real question is, “Does a longer time on market effect the ultimate selling price of a home and, if so, by how much?” The attached graph shows data collected from Montgomery County home sales in 2011 and how selling prices decline with increasing “Days on Market” Homes that sell within the first week to the first month sell on average for 97 percent …

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House Hunt: 16 Homes on the Market in North Penn, Souderton

Two open houses will take place Sunday in Lansdale and Harleysville.

1042 Charter Oaks Drive, Upper Gwynedd—Price reduced!—$599,900. 4 bedroom/3.5 bathrooms. Ths single family detached Colonial is ready to go! It's a very motivated seller. This totally upgraded custom home drenched in sunlight. It has new hardwood floors throughout and two main bedroom suites created with recent two-story addition. The main bedroom has a sitting area and luxury bath, and a rear staircase leads to family room. The third and fourth bedroom are combined, but dividing wall can be replaced. Gourmet kitchen with custom cabinetry and marble counters. Listed with Donna Brun, Prudential Fox & Roach Realtors, 215-880-8708. Open house Sunday, 1 to 3 p.m.: 517 Woodbridge Circle, Harleysville—Reduced price!—$212,500. Terrific twin with …

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