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World will end December 21st 2012


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2011 May 18, 6:20am   1,236 views  3 comments

by TechGromit   ➕follow (1)   💰tip   ignore  

Or more specifically December 31st, 2012. This is when the IRS stops forgiving deficiencies of people who have there properties foreclosure, repossessed, or they abandonment it. A deficiency is the difference between your original mortgage amount and what the bank sold the property for (its Fair Market Value). Unless Congress or the President decide to extend this madness, there will be real repercussions to walking away from your mortgage after December 31st, 2012. I can't imagine what the bone head logic was behind the tax forgiveness policy in the first place, you would think if people knew that the IRS was waiting to hit them up for $50,000 in taxes if they didn't pay there mortgage, many would think twice about walking away from there obligations.

Pretty much everything the President and Congress has done so far with regard to the housing collapse has made things worse, not better.

#housing

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1   CL   2011 May 18, 6:25am  

Naaah. It would just treat the forgiven amount as income anyway (which could be substantial, but not necessarily).

If the people who lost their homes had to also treat the artificially inflated "value" of the house as income, it would only penalize them further. The Government then would have an incentive to do this again, no? Debtor's prison too, maybe?

I suspect this was designed to let you know if you are screwed, act soon and make your decision. It will get worse after 2012.

2   ih8alameda2   2011 May 18, 6:48am  

yeah, somehow the pessimist in me sees that being extended, esp after an election year.

3   PockyClipsNow   2011 May 18, 6:58am  

It seems like the world already ended.

This new world of perpetual ZIRP, endless money printing to bailout crooks and gamblers - I don't like this world.

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