March 15, 2010
While The Fed Forgives, California Does Not (For Now)
"When the foreclosure crisis started, Congress passed the Mortgage Forgiveness Debt Relief Act of 2007 so foreclosed homeowners would not be liable for their canceled debt. It is in force through 2012. California had a similar law, but it expired at the end of 2008, leaving Californians who lost their homes in 2009 potentially liable for big state tax bills."
∙ Short sale tax shortchanges ex-homeowners [SFGate]
First Published: March 15, 2010 7:30 AM
Comments from "Plugged In" Readers
These folks have been freed from the bondage of their usurious mortgage payments and can now rent at half the cost; personally, I’d like to see them make payments to the state for their speculative excess. I mean, I'm doing my part; I just did my taxes and noticed a $400 increase in payments to the state. I tracked it down; my little tax credits running around in diapers are now worth $200 less a head.
Did anyone else notice that Ben has landed the helicopter? I know that the funds for QE are created electronically, but I kinda like the thought of Ben running onto the floor of the Bureau of Engraving and Printing screaming "Stop the presses!"
Posted by: EBGuy at March 15, 2010 11:24 AM