Bill Seeks to Extend Federal Tax Exemption for Forgiven Mortgage Debt

Congressman Bill Foster (D-Illinois) introduced the Homeowners Debt Relief Extension Act (H.R. 3856) on Tuesday. The bill would extend the mortgage debt tax exemption that’s been in place since 2007 for another two years.

The Mortgage Debt Relief Act of 2007 makes debt that is reduced or cancelled through a loan modification or debt forgiven through a foreclosure or short sale tax-exempt. Other criteria also apply, such as the indebtedness must be on a principal residence and the maximum amount that can be claimed for the tax break is $2 million.

Since 2007, Congress has extended this tax relief to homeowners so that they are not liable for taxes on the difference between the house’s value and the loan modification or between the house’s value and the amount of a foreclosure sale or short sale. This tax relief expired on December 31, 2013, however, and so far, no extension has been passed by lawmakers, though homeowner advocates are lobbying heavily to reinstate the mortgage debt tax exemption.

Foster’s bill would ensure any qualifying reduction or cancellation of mortgage debt is not considered taxable income by extending this tax relief through January 1, 2016, for debt forgiven after December 31, 2013.

Foster’s proposal calls for the costs of such an extension to be offset by repealing a tax break in the Internal Revenue Code’s Section 199 for oil and gas companies. Foster says the Section 199 deductions are no longer necessary since oil and gas companies are making billions in profits each year.

“With millions of struggling homeowners still underwater on their mortgages, now is not the time to cut off this tax credit,” Rep. Foster said. “We shouldn’t be offering up millions in tax breaks to oil and gas companies, while leaving working families, still struggling to recover from the recession, with a bigger tax bill.”

For more information contact Julian Lopez

Direct:909-996-4470

For more information on the article click the link:

http://www.dsnews.com/articles/bill-introduced-to-extend-federal-tax-exemption-for-forgiven-mortgage-debt-2014-01-14

Credit standards going easy on jumbo mortgages

Credit standards going easy on jumbo mortgages

Demand for non-government loans keeps growing

Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it's a completely different story.

Two key points about the November numbers stand out according to Herb Blecher, senior vice president of Black Knight Financial Services’ data & analytics division.

“First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category,” Blecher said.

The second point Blecher emphasized was that overall volumes are down. “We are seeing an increased proportion of the market being supported by non-agency (vs. government) lending – with the share nearly doubling as compared to 2010,” Blecher added.

However, increasing home prices have helped offset some of the drop in originations with demand for home equity loans increasing.

“While first mortgage originations are almost half the levels as one year ago, total home equity lending, including loans and lines, has increased by 70%, and originations of second lien home equity loans have more than doubled,” Blecher said.  

In addition, the market also observed a 75% year-over-year increase in the share of non-agency jumbo prime lending.

“Notably, nearly all of these jumbo loans have been originated with no mortgage insurance, which may indicate an increased appetite for risk, as well as an opportunity to expand credit criteria, for originations within the private market,” Blecher explained.

The November data revealed that the population of “refi” mortgages has decreased by about 4 million loans since the end of 2012.

In comparison, just 5.9 million loans meet broad-based refinance criteria. But loosening the credit standards to just a 700 FICO increases the refinance population by almost 17%, or an additional 1 million loans.

For more information click the link below:

 http://www.housingwire.com/articles/28563-credit-standards-going-easy-on-jumbo-mortgages

HARP 2.0 REFINANCE PROGRAM TO EXPIRE 2014

Did you know that at  the end of 2014 the mortgage program called the HARP 2.0 refinance program is expiring?  As of now the government has not extended this program to help borrowers  who have little or no value to refinance. If you currently have a Fannie Mae or Freddie Mac loan you can refinance into a lower interest rate even if you are upside down on your current home value. Many home owners don’t even know about this amazing opportunity  so if you or friends would like more details on this program before it ends please contact Julian Lopez.

For more information or to see if you are eligible call 

Julian Lopez at:

 909-996-4470

“Behind the Scenes” at the Orange Empire Railway Museum (Perris)

Get “Behind the Scenes” on January 18 and 19 at the Orange Empire Railway Museum in Perris, where volunteers operate, maintain and restore the West’s largest collection of vintage rail cars. At this annual event, visitors get special access and tours of locomotives, passenger and freight cars, streetcars, interurban electric cars and artifacts dating back to 1870.

Bring the family for a fun and fascinating day! Activities at Behind the Scenes will feature tours and special equipment operations. Visit Ruffulo Carhouse 7, a restoration shed filled with trains and trolleys that is not usually open to the public. See the progress on historic conservation projects, including ATSF 98 FP45 locomotive.  Get special access to the pit where you can  go underneath a street car and see how it works. For an additional fee, get behind the throttle (under supervision) and run a real locomotive.  Take a ride on a hand car and enjoy other special equipment. 

Behind the Scenes coincides with Steam Weekend so you’ll see a real steam locomotive in operation and get to ride behind the powerful VC #2. Admission includes unlimited rides on other classic passenger trains and streetcars of Southern California’s railroad past.

This gated event supports museum operations and the continued restoration of historic rail cars and rail line. Admission is adults $12, children 5 to 11, $8, children four and under are free.  For directions and ticket information, visit www.oerm.org or call  (951) 657-2605.

For more information click the link below:

http://www.inlandempire.com/behind-scenes-orange-empire-railway-museum-perris/

Clarification of LA Times Mortgage Debt Forgiveness article

Clarification of LA Times Mortgage Debt Forgiveness article

A recent article in the Los Angeles Times discussing the expiration of the Mortgage Debt Forgiveness Act may have caused some confusion for homeowners and REALTORS®.

The article stated, “Some Californians won’t face higher taxes…because a state law enacted in 2010 shields homeowners from paying taxes on any benefit from a short sale...”   This may imply that not all California short sales are exempt from taxes.  The article clarifies in subsequent sentences that only those who received a loan modification would be hurt by the expiration of the debt forgiveness law.

Specifically, ALL California homeowners who sold their home in a short sale will not pay taxes on the mortgage deficiency, but those who received a loan modification are not exempt from taxes.

For more information click the link below:

http://www.car.org/newsstand/news/latimesclarification

Jack Benny & George Burns @ Lewis Family Playhouse (Rancho Cucamonga)

Jack Benny & George Burns @ Lewis Family Playhouse (Rancho Cucamonga)

January 12 @ 3:00 pm - 6:00 pm

Event Navigation

1/12/14 @ 3:00PM: Legendary duo and longtime friends, Jack Benny and George Burns, team up for a laugh out loud adventure in Heavenly Laughter. Clarence, Angel 3rd Class from the Pearly Gates Entertainment Department, returns to Earth to try and earn First Class Wings. His current task is to escort two of the entertainment world’s biggest pranksters – Jack Benny and George Burns. If successful, all three return to “make the world laugh again!” Sunday, January 12, 2014 at 3:00 pm. Tickets for Gold Level Seating are priced at $23.00 for General, $21.00 for Seniors. Tickets for Silver Level Seating are priced at $18.50 for General & Seniors.

For more information click the link below:

http://www.lewisfamilyplayhouse.com/events/view.php?eventid=0000001471

2014 Southern California Half Marathon & 5K

DATE

Start: Saturday, January 11, 2014 @ 8:00 AM (PST)

ADDRESS

Barranca Parkway between Lake Streets and Creek Road in Irvine 20 Lake Street is the closest address to use to Google the start and registration areas 

Irvine , CA 92604

REGISTRATION CLOSING DATE

Tuesday, January 7, 2014 @ 3:00 PM (PST)

ORGANIZER'S WEBSITE:

http://www.active.com/irvine-ca/running/distance-running-races/southern-california-half-marathon-and-5k-2014