Mortgage Rate News

One of the big issues right now revolves around foreclosures, and efforts to stop foreclosures. Various programs, from Hope Now and Project Lifeline to the recently passed housing relief bill are designed to help stall the flood of foreclosures and get distressed homeowners out of trouble. (Whether or not they are working is a completely different discussion.)

Part of the efforts to help homeowners include some mortgage lenders offering some measure of canceled debt through partial loan forgiveness or some other means. And, unfortunately, that sort of canceled debt is considered by tax laws to be income. The good news, reports Chris Bibey at the Tax Center, is the following:

If you find yourself in this position, you should be aware of the options for excluding this “extra income” from your tax return. There are three exclusions: one for bankruptcy, one for a case of insolvency, and one for mortgage debt. The mortgage exclusion is most commonly used, and for this reason should be understood by anybody in this position.

A few months ago, Congress passed a tax relief bill aimed at helping homeowners who found themselves in a position where canceled debt may be a reality. The bill prevents these folks from finding themselves in even more trouble as they struggle to pay income tax on money that they never actually got to use as income.

Something to consider, though: The provision expires in 2009. Also, there are some restrictions as to the type of canceled debt that applies. Consumer debt (including cash home equity loans) is not included in the tax relief bill. It is a good idea to consult a knowledgeable tax attorney or accountant so that you know exactly whether or not you qualify.

Tags: home equity loans, home equity, home mortgage loan, mortgage lenders,
tax relief, mortgage forgiveness, tax laws

Over the weekend, President Bush announced that today will be the first day that tax rebate deposits will go out. This is actually a bit earlier than originally planned. And although it only applies to some of tax rebate direct deposits, others will follow shortly, depending on SSN and when the tax return was filed. Tax rebate checks will start going out soon as well, also early.

Tax rebate: pay down debt

Many Americans are thinking about using the tax rebate to pay down debt. The consumer spending spree that we have been on for the last decade and a half is coming to an end as the subprime mortgage crisis affects credit markets and the economy. And Americans are feeling less secure about their financial situations. All of this conspires against the debt-based economy as consumers start to think that maybe an abundance of easy credit isn’t all its cracked up to be.

Tax rebate: paying for neccessities

The other thing that is popular amongst Americans is planning for the increase in costs to necessities like transportation and food. Food prices are rising and gas prices have household budgets straining. Cheap oil is no longer something to rely on, and that is driving up all sorts of costs.

Rather than being an economic stimulus, this tax rebate is more likely to keep Americans afloat. Will your tax rebate actually be what saves your personal finances from folding under the pressure?

There are many different uses that the coming tax rebate may be used for, but the general consensus is that consumer spending is no longer at the top of the list. After all, there are many more pressing matters that need to be attended to.

What will you use your tax rebate on?

Tags: mortgage blog, pay debt, home mortgage loan, tax rebate,
cheap oil, personal finances, use tax rebate

This year, there are some new things being added in terms of taxes. With regard to home mortgage loans, mortgage debt forgiveness tax relief is a solid fixture. And don’t forget that this year, you need to file a tax return in order to get your “economic stimulus” tax rebate. Even if you don’t normally need to file a tax return, this year it is necessary if you want your tax rebate.

Here are some Tax Day tips to help ensure that you are on the right track with your taxes:

• Double check your tax return. Before sending it in, have another look at your tax return. Better yet, have someone else double check your tax return. There are usually agencies and organizations in most towns that offer free tax help, or that will look over your tax return for a small fee.
• Make copies. You should make copies of your tax forms and all supporting documentation. Keep it in a safe place. This way, you have something to refer to if an audit happens. Note that Office Depot and Staples offer to make copies of your tax forms for free.
• Get help from the source. The IRS offers free tax help and Tax Day tips at its Web site, and also when you call 1-800-829-104o.
• Send your tax return (and/or payment) out today. My tax return was filed electronically, but I still have to send out payment. Tax returns and payment need to be post-marked by midnight tonight. Many post offices are open until midnight in order to make these accommodations. If you can’t get your tax return done by tonight, file for an extension to give you extra time.

And, of course, start now to prepare for next year!

Tags: tax day tips, tax rebate, home mortgage loans, mortgage loan blog,
pay taxes, economic stimulus, free tax help