Mortgage Forgiveness in 2013?

Talk about an exciting way to kick off the new year…..

We have had a few questions come into the office this morning, and my answer so far has been (in the words of Barry Manilow)

“Looks like we made it.”

Continued mortgage forgiveness did get tucked into the final version of the fiscal cliff deal.

This means that sellers who are still underwater on their mortgage, have received a one year reprieve when it comes to debt relief and mortgage forgiveness.

We also kept the mortgage deduction – but we never doubted that would disappear.

Why is mortgage forgiveness important?  Well, 13,000 loan modifications were done in November alone. But that pales in comparison with another 98,000 short sales which were finalized in the 3rd quarter.  Banks and homeowners seem to be agreeing to take the short sale route vs. the modification route as a way to move the potential foreclosure inventory.

What does this mean for you as an investor?  It means through 2013 we can educate homeowners and show them that the sale of their property still has a tax incentive to help them make a decision.  It helps the market keep moving – a good thing since we still have a massive supply of potential foreclosure property.

Plenty of people are still underwater and owe more than their home is worth.  Get out their and help them make a decision on what to do next.

Wondering where to go in your real estate investing career?

Come join us as we kick off the new year of

Washington REIA Network on Jan. 21st.