Sharing of Profit – Key Provision of Housing Recovery Act
If you were lucky enough to qualify for the new housing recovery act, you should understand that if you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, you can only retain equity gains based on a sliding scale. You would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home. San Diego income real estate
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the only way to pay that off is massive inflation. 10-15% every year for 6-8 years. Worst part is the next President will take the fall for Greed the scope of which the world has never seen. So hold on to that house if you can, in a few years it will be worth three times it’s present value and that mortgage you can’t afford will represent a years salary. San Francisco lawyer
Why always blame somebody else? What happened to self responsibility and self accountability? If you cannot not afford the house payments then don’t buy a house. If you cannot qualify for a fixed-rate 30-year loan, then that means you are not qualified! It’s your responsibility to know how much you can afford. It’s as simple as that.
This is all Obama’s and his leftist friends from Chicago fault. Individuals are walking away and not taking responsibility for their financial commitments. They know Obama and Co. won’t do anything. It’s his fault. I can’t wait for him to be defeated in November. Orange County Lawyer
CA was the perfect state for the subprime mortgage mkt. When you have statistics that show less than 20% of the state can afford to buy a home and yet people were buying houses like nobody’s business there had to be some fancy math going on. They were reporting in 2006 that 80% of new mortgages were non-traditional variable rate/interest only loans because the only way to get people into these overpriced homes was to get creative. Never in our history had home prices skyrocketed like they had in the past 10 years and everyone wanted in on the gravy train, from the person selling his home, the realtor handling it, the banks wanted the bigger mortgages, to the people that thought they deserved an expensive home, to the banks allowing equity to soar so people could turn their homes into ATMs and the banks would get years of interest. San Diego California real estate agents
Future inflation will not manifest iteself in the ways it did in the past. There will not be wage inflation due to a global labor market. The new inflation will result in higher prices for goods and services, but this won’t be offset by higher wages. So you will see an erosion of your standard of living. Housing prices won’t appreciate at the inflation rate because people won’t be able to afford higher prices for housing due to the fact that their incomes aren’t increasing at the same rate. Employers don’t need to increase wages because lower cost labor is available abroad. This is unlike the situation in the 1970s when there was both wage and price inflation. Now we will get only price inflation. Tijuana Mexico Dentist
As I understand the new rule.. the vacation home/income property change
affects purchases after 2009… prior purchases are grandfathered.
Begining in 2009 if you buy a vacation home and move into it for a short
time you can only write off a portion of the capital gain.. i.e if you
own a vacation home/ income prioperty say for 8 years and decide to rent
out your primary home and move into the property for 4 years then sell
to get exemption they divide the number of years you have owned the
property by the number of years you occupied it as a primary residence
and the percentage is what you use to calculate gain.. In the above
example if you had a gain of $200,000 then you could excluded 50%( 8
divided by 4) of the gain( $100,000) and the balance($100K) would be
taxable at long term capital gain rates. Hoodia Diet Supplement
I fear that government intervention will be another band aid fix with
long term downside implications. San Diego Hotel Rates