Seattle Mortgage Rates Today 12/27/12
Seattle Mortgage Rates Today 12/27/12: As President Obama makes his way back to the White house today to address the “fiscal cliff,” Senate Majority Leader Harry Reid offered little hope in terms of a deal from House Republicans. With just days to the end of existing tax cuts, it seems impossible for Congress and the White House to come to a resolution by the end of the year. Concerns over the fiscal cliff are negatively affecting consumer confidence and investor sentiment as well as markets both here and abroad. If an agreement can be reached, there is a chance that Congress will be able to act quickly to avert the cliff and push the automatic tax hikes and spending cuts further down the road.
Very important for all home owners who are currently in a short sale position: With the fiscal cliff resolution far from coming to a conclusion and the Mortgage Forgiveness Debt Relief Act not even being discussed for a possible extension for the 12/31/12 deadline…Taxes must be considered. This will be a serious tax burden in 2014 when you file for 2013 taxes. On average, it is being calculated that a home owner would owe $25,000 more to the IRS in income tax. OUCH! With the housing market and economy in recovery mode, it would not seem that the extension would be granted or needed. The “Fiscal Cliff” is a clear example of the pain government has in order to balance the budget. Taxation on short sales, foreclosures and mortgage reductions will be considered income. This is a perception that must be considered as reality now. “Consult a CPA or Tax adviser for your specific situation”