Communication is the Key on Mortgage Interest Deduction (MID)

This excerpt from Housing Watch Dec. 6th 2010

In case you missed it, The National Commission on Fiscal Responsibility and Reform, released its recommendation last week, including the proposed elimination or limitation to the mortgage interest deduction ("MID") for homeowners.

In brief, the commission proposes to limit the mortgage interest deduction to only primary residences (today, they apply to second homes as well), and cap the deduction to $500,000 worth of mortgages (today, it's $1 million).

As you can imagine, the real estate industry is in quite an uproar over any changes to the mortgage interest deduction.

Ron Phipps, the President of NAR, has issued a pretty strong statement in opposition, calling the mortgage interest deduction "vital to homeownership and the economy" and vowing to "remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest". The National Association of Home Builders is also, as you can imagine, opposed to messing with the MID.

What could they be thinking??? The housing industry isn't taking a big enough beating?? Maybe the Bureaucrats are just trying to justify their existences!!

This is definity something to call your congressperson about.

Mortgage Help for Home owners

From the Sacramento Bee



42,000 of California’s jobless will get help with mortgages
The U.S. Treasury Dept. announced yesterday it is providing additional funding to a California program to help homeowners struggling to make their mortgage payments due to unemployment. The program, administered through the California Housing Finance Agency (CalHFA) will assist struggling borrowers make up to six months of mortgage payments. Lenders will be asked to match the government contribution.



MAKING SENSE OF THE STORY FOR CONSUMERS

The program aims to help 19,000 unemployed borrowers in California between its November launch and next July. An additional 23,000 borrowers will receive help over the next two years, according to CalHFA estimates.


To qualify for the program, borrowers must be unemployed and eligible for unemployment benefits, and live in the home tied to the mortgage. Borrowers must be fewer than 90 days behind on mortgage payments and meet low- and moderate-income guidelines. Income requirements can be found at http://keepyourhomecalifornia.com/income.pdf.