I’ve spent a lot of time this month on Capitol Hill, meeting with various Senate offices to try and get a specific piece of legislation passed to help real estate investors.
Which issue specifically?
Glad you asked.
The Mortgage Forgiveness Debt Relief Act.
This legislation used to protect homeowners opting to sell their homes at a discount through a “short sale” from having a debt cancellation tax levied by the Internal Revenue Service.
This legislation expired last year and it basically destroyed the short sale industry.
Why?
Because if you are already losing your home, you have no money to pay the mortgage, much less pay the taxes on the amount of the mortgage that was forgiven.
Therefore more properties have just gone all the way through to foreclosure, as rather than be dealt with in advance using a short sale.
Given the amount of distressed housing in this country (including the “shadow” inventory), the more that can be done to facilitate an investor’s ability to help clean up this mess, the better.
We are asking Congress to basically eliminate the tax penalty for a homeowner who loses their property in a short sale.
This is the first of many issues I’m working on behalf of being on the National Real Estate Investors Association Board. There looks to be bipartisan support and I’d expect it to pass after the elections in November.
In other news…
On Saturday September 6th I’m again teaching my very popular Rapid Cash Generator MasterClass.
At this full-day workshop, I’ll teach you my proven method for how to make money without money in real estate by wholesale flipping deals quickly.
If you’re ready to start living life on your own terms, with no limit on your earnings, I will show you how.
The key is rapid cash generation.
Make your move here now:
http://TractionREIA.com/tom
Tom Zeeb
Traction Real Estate Mentors
