Attention First Time Buyers and Real Estate Investors!  This 3 year old townhome in Churchill Club in Oswego is listed for 154,900!  That is a GREAT BUY!

Churchill Club is a fantastic neighborhood to live in!  Massive clubhouse, pool with waterpark for the kids, tennis, biking trails, sand volleyball, you name it!

This home is easily 25k under market and we want an offer THIS WEEK!  No major repairs necessary and all appliances are included.

Give Rich and Karen a call (630-430-5927) or email rich at ayersteam.com if you would like to see this home!  Here is a link to the website we set up for the home:  www.366RisenStar.com

 Rich and Karen Ayers are licensed Real Estate Brokers in Illinois.  We are experienced Brokers who specialize in Residential and Investment real estate in Naperville, Oswego, Plainfield and the surrounding suburbs of Chicago. We also own and manage multiple investment properties and help real estate investors find, buy, fix, rent and sell their investments. Visit our website at www.AyersTeam.com.com or receive our blog via your RSS Feed or in our email.

A few weeks ago I wrote about the "Mortgage Forgiveness Debt Relief Act of 2007".  (Scroll down to read more).  I've now included a link to an IRS webpage that has some Q&A that explains in more detail the Tax Ramifications of the Act.

Here is the link.

If you are in a Short Sale or pre-foreclosure position, we can help!!  Please give us a call!  Take our Short Sale primer at our website www.AyersTeam.com, scroll down and click on Short Sale.

Rich Ayers, e-PRO, ABR

On Dec 20, 2007, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007.  Quite a mouthful! 

For those homeowners who are in a short sale or possibly a pre-foreclosure position, this Act will ensure any debt forgiven on a mortgage secured for a principal residence will not be taxed.  Picture this!  You sell your home at a loss....let's say a $30k loss.  That means you sold the home for 30k less than the mortgage and the lender gave you approval to do that.  Guess what used to happen?  At the end of the year you would receive a 1099 from your lender and you would owe tax on that 30k!  So at a 25% marginal tax rate, you would owe close to $7,500!!!  Now, where in the heck is the homeowner who just sold their house for zero proceeds going to come up with $7,500.  I've read of tax bills that were in the 20-30k range.  Unbelievable!!

So, this act ensures no tax is due.....It is only available for 3 years, so if you are in this position, please give us a call and we can try to help out with your home.

Here is a link to the article.

Full text is below from Associated Press

Bush Signs Mortgage Tax Relief Into Law
President George W. Bush signed legislation into law on Thursday that will ease the tax burden for home owners who have had debt forgiven on a mortgage due to a foreclosure, short sale, or deed in lieu of foreclosure. The bill — Mortgage Forgiveness Debt Relief Act — has been supported by NAR since the 1990s.

"The president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home," said NAR President Dick Gaylord in a statement. “Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation."

The tax code used to require a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower had been forgiven. If the property was sold at foreclosure or was sold for less than what was borrowed, that difference was considered income and subject to the tax.

“We have always believed that it is clearly an issue of fairness and of not kicking people when they are down,” Gaylord said. “By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.”

Other Legislation Making Its Way to the President

Also, this week, the U.S. House passed two other bills — which have already passed the Senate — that could have a big impact on the real estate industry.

The bills are:

• Mortgage Insurance Tax Deductibility. This bill makes mortgage insurance premiums tax deductible for all mortgages originated for the next three years. Mortgage insurer Genworth Financial estimates that this tax break is worth $350 to the average taxpayer who has purchased a home with less than 20 percent down.

• Terrorism Risk Insurance Act. Federal backstops for terrorism insurance, passed initially after the Sept. 11 attacks, have been extended for another seven years. The bill also expands the program's protection by including domestic terrorism. The insurance and real estate industries have pushed for an extension, saying federal guarantees to help cover catastrophic losses are crucial to stimulating the investment needed to spur economic growth.

Source: The Associated Press, Jim Abrams, and Dow Jones International News (12/18/07) and REALTOR® Magazine Online (12/20/07)