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The Senate approved a bill late Tuesday that would retroactively extend over 50 expiring tax provisions for one year, including one that shields distressed homeowners from paying taxes on any mortgage debt forgiven in a short sale.

The Senate approved the bill 76 to 16, which extends the provisions until Dec. 30 of this year (the one-year extension is retroactive). The House passed the bill 387 to 46 on Dec. 3.

At one point, House and Senate lawmakers were close to a deal on a two-year extension. But the White House objected because key business tax provisions were given permanent status while others affecting low- and moderate-income households would still have had to be extended each year.

"In my view, any agreement on permanent tax policies must be balanced between support for businesses and support for working families. A deal that only makes corporate policies permanent — or one sharply skewed in that direction — would have failed the test of fairness," said Sen. Ron Wyden, chairman of the Senate Finance Committee.

Under the bill, homeowners can deduct the cost of mortgage insurance premiums on their 2014 tax forms. This tax break covers private mortgage insurance premiums as well as premiums paid on Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service guaranteed loans. The U.S. Mortgage Insurers welcomed the extension.

"USMI commends passage by Congress last night of a one year extension of vital homeowner tax relief. We are especially pleased that the legislation includes the tax-deductible treatment of mortgage insurance premiums for low and moderate income borrowers. We look forward to working with Congress towards permanent enactment of this important tax relief for homeowners," according to the private mortgage companies.

About 3.6 million taxpayers claimed the mortgage insurance deduction in 2009, according to analysts at Compass Point Research and Trading LLC.

The bill also ensures underwater borrowers that sold their homes in a short sale in 2014 will not be penalized.

Prior to the housing bust, troubled homeowners had to pay taxes on any mortgage debt that was canceled or forgiven by a lender. The amount of forgiven mortgage debt was treated as ordinary income and taxed accordingly.

The "Mortgage Forgiveness Debt Relief Act is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales," said Isaac Boltansky, an analyst with Compass Point.

In 2007, Congress passed the Mortgage Forgiveness Debt Relief Act so that distressed borrowers would not be penalized for doing a short sale. Congress extended this tax relief in 2009 and 2012, but failed to pass a tax extender bill at the end of 2013.

Since 2008, more than 800,000 distressed homeowners have taken advantage of this tax break, according to Rep. Charles Rangel, D-N.Y., an original sponsor of the debt forgiveness bill in 2007.

Short sales have been declining over the past few years due to an improving economy, lower foreclosures and the uncertainty over the tax consequences of a short sale or deed in lieu transaction, where the homeowner simply signs over the deed to the house to the bank and vacates the property.

Fannie Mae and Freddie Mac servicers completed 27,800 short sales during the first eight months of this year, compared to 87,740 in 2013 and 125,232 in 2012.

Boltansky noted that the retroactive reauthorization for 2014 also gives Federal Housing Finance Agency Director Mel Watt a shield to resist Democratic pressure to permit principal reductions on Fannie and Freddie loans.

Watt "will have additional political cover to reject calls to embrace the principal reduction through HAMP as the tax consequences could limit borrower participation" he wrote in a Dec. 2 report.


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Posted by John Kriza on December 18th, 2014 10:38 AMLeave a Comment

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December 9th, 2014 2:35 PM
Are you planning on selling in the next few months?  Right now, quality inventory is extremely low and there are lots of buyers still in the marketplace with more to come after the holidays!  I would encourage you to start thinking about listing your home in the beginning of January and get an early jump on the Spring market.  If you are thinking of doing this, please contact me right away so we can get together and discuss the value of your property, the marketing plan, and things to do around the house to get ready.  Please contact me right away!

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Posted by John Kriza on December 9th, 2014 2:35 PMLeave a Comment

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Now priced at $600,000....this mini-estate is a great value and ready for it's next owner.  For more info and pics, please visit www.209woodview.com

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Posted by John Kriza on October 22nd, 2014 9:28 AMLeave a Comment

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$250,000.00
176 Maple Lane

Toughkenamon, PA 19374



Beds: 3 Rooms: 0
Full Baths: 2 Sq. Ft.: 2130
Garage: 2 Built: 1974
 

Wonderfully cared for bi-level home ready for it's new owner! Enjoy the lovely gardens and landscape created by this over the years. This home features 3 BR/2 BA, living room, dining room, eat in kitchen and sunroom on the main level.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

John Kriza
Beiler-Campbell Realtors
6104447600
www.johnkriza.com



 
  Visit this listing here

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Posted by John Kriza on October 10th, 2014 11:38 AMLeave a Comment

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$175,000.00
836 S. Walnut St.

Kennett Square, PA 19348



Beds: 2 Rooms: 0
Full Baths: 1 Sq. Ft.: 1170
Garage: 0 Built: 1951
 

This one won't last long! Wonderful ranch home in Kennett Square Borough ready for it's next owner. This home is well kept and in good shape but will need some updates to kitchen, baths, etc.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

John Kriza
Beiler-Campbell Realtors
6104447600
www.johnkriza.com



 
  Visit this listing here

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Posted by John Kriza on October 8th, 2014 10:27 AMLeave a Comment

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Don't miss out on the best valued new construction around in the Kennett area....just completed and ready for immediate occupancy.  This 3149 sq. ft. colonial home sits on 2 acres near the Borough of Kennett Square.  For more info and pics, please visit www.710creek.com

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Posted by John Kriza on October 7th, 2014 10:19 AMLeave a Comment

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$249,900.00
138 Ponds View Dr.

Oxford, PA 19363



Beds: 3 Rooms: 0
Full Baths: 2 Sq. Ft.: 1890
Garage: 2 Built: 2002
 

Beautiful home built by Cedar Knoll Builders in popular Twin Ponds with a finished basement! This home welcomes you in with a floor plan that is open for mingling with your guests.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

John Kriza
Beiler-Campbell Realtors
6104447600
www.johnkriza.com



 
  Visit this listing here

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Posted by John Kriza on September 8th, 2014 1:35 PMLeave a Comment

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$214,900.00
141 Garner Dr.

Avondale, PA 19311



Beds: 3 Rooms: 0
Full Baths: 1 Sq. Ft.: 1782
Garage: 1 Built: 2010
 

Almost brand new end unit town home in Avon Grove Schools!
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

John Kriza
Beiler-Campbell Realtors
6104447600
www.johnkriza.com



 
  Visit this listing here

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Posted by John Kriza on September 8th, 2014 1:34 PMLeave a Comment

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$429,900.00
20 Whitetail Dr.

Chadds Ford, PA 19317



Beds: 5 Rooms: 0
Full Baths: 3 Sq. Ft.: 4228
Garage: 2 Built: 1977
 

Situated near the Rt. 52 corridor, this 4200+ sq. ft. raised ranch has plenty of space to offer. Located on a quiet road on 2 acres backing to woods, sits this 5 BR/3/5 BA home.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

John Kriza
Beiler-Campbell Realtors
6104447600
www.johnkriza.com



 
  Visit this listing here

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Posted by John Kriza on August 20th, 2014 1:27 PMLeave a Comment

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July 28th, 2014 1:57 PM
4 W. Jonathan Ct. received lots of interests and sold within 4 days! If you live in Orchard Valley and want to sell, please contact me right away!

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Posted by John Kriza on July 28th, 2014 1:57 PMLeave a Comment

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