Now this is the type of failed flipper and housing gambler bailout that I may actually be in favor of. Before if you were a failed flipper (OK, let's just say Casey Serin for example) and you did short sales or foreclosures on your debt-trap, you got 1099'd by the bank and had to report the shortfall or debt forgiveness to the IRS as income.
- Listen to a realtor and buy a hilariously overpriced apartment for $1 million
- Short sell it for $600,000
- $400,000 got reported as income, and you had to pony up 28% in taxes (at least)
$0 baby! No taxes! NAR-Party! Just like the NAR-written no tax on home sale proceeds legislation that caused the bubble! Great news for the housing market!
Well, not exactly. Why? Because now millions of upside-down housing gamblers will have even more reason to short sale or just walk away. You think America has a foreclosure and home price crash problem today? Oh, just wait. If this sucker passes, and I think it will, it'll be GAME ON! Inventory will explode, lawns around America will go brown, prices will come down even faster, and can you say RTC2?
Here's the corrupt monkeys at the NAR, you know, the people who care so so so much about the commission-payers (I mean poor folks) who are losing their homes:
Realtors(R) Applaud House Passage of Mortgage Cancellation Tax Relief
The National Association of Realtors(R) praised the U.S. House of Representatives for today's passage of the Mortgage Cancellation Tax Relief Act, H.R. 3648, by a vote of 386 to 27. Since the early 1990s, NAR has advocated for repeal of the current law, which forces individuals to pay an income tax when they have had a loan forgiven or have had to foreclose because of their inability to pay their mortgage.
"Congress made a good decision today that will affect many Americans who find themselves in a truly bad situation," said NAR President Pat V. Combs
"Realtors(R) are about building communities, not just selling homes. We must work together to prevent the dream of homeownership from becoming a nightmare," said Combs. "This is just one step that will help families get on with their lives and begin rebuilding their economic security."