Housing market

We elected him, we deserve what we get. I believe the President wants this to happen. He can tax us out of existence, increasing the deficit while spending every dime he gets making the American people totally dependent on government entitlements. Until he runs out of other peoples money to spend that is. Like Greece. Only no one will bail us out.

I hope I am wrong and a good working agreement is reached. Taxing the "rich" alone WILL DO NOTHING! Pays for the government to operate for EIGHT days!! Total class warfare rhetoric. Spending must be cut! FAT CHANCE!

Michael Mangham
Mentoring/Team Bulding Nationwide
MD Home Acquisitions LLC

Our leaders are teaching us to SPEND more! Ha!
It's the American way, right? Get in over your head.

PS. ("We" did not vote for him...LOL)

USDebtClock dot org ---watch the ticker "Liability PER Tax Payer"

We all take part in the American economy...but as Dean says, we need to focus on our own individual economy, and that is in our hands ...

What is scary is the loss of the mortgage interest deduction!! That WILL effect each and every one of us. Even in our own business doing just what Dean says.

I don't blame one person. I blame Nancy Pelosi, Harry Reid, all of their associates and most of all the people who voted for class warfare, racism and the Nanny state idea of America.

But, you are right, all we can do is build our business as long as the government allows us to.

Hope all is well!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Housing prices are increasing primarily because of banks holding on to "shadow inventory". This is the very reason why you need to have multiple strategies in your tool belt (just like Dean says to do). No matter what the economic situation, there is a strategy that will work.

Just my two cents,

I understand what you're saying about the interest deduction, a huge incentive for homeowners, and yes, it will have an effect on a lot of people, including myself; but I don't want to be one of the many complainers who don't do anything to better themselves and then blame their misfortune on the government, on the President, etc. etc. It's irrelevant who is in power; some will be happy, while others won't; it's always been like that and I don't think that will ever change.

I work for the State, and I have been one of the many employees who has gotten hit by furloughs, pension reform pros, etc. but I don't let that get me down; I used, and still do, my furlough day(s) to do rei; I'm doing rei so that I don't have to depend on a pension or social security when I retire. I am taking care of my 'economy' every day, and it feels great; and I am so THANKFUL to have found DG and this site which are helping me accomplish that!

On January 1st, Congress signed the H.R. 8, the American Taxpayer Relief Act of 2012. The mortgage cancellation relief for home owners or sellers who have a portion of their mortgage debt forgiven by their lender, typically in a short sale, foreclosure sale or loan modification is extended through 2013.
Additionally, deductions for mortgage interest, mortgage insurance premiums and state and local property taxes, are extended. The exclusion from capital gains with the cap at $500,000 ($250,000 for individuals) remains in effect (subject to limitations).

This is good news for the real estate industry. Now we just have to make sure that we try not to repeat the financial crisis again. Other good news is that foreclosure rates are dropping in many large cities such as Dallas and Atlanta.

Reference: http://www.bankforeclosuressale.com/wp/article-01074151.html

To begin with, most taxpayers do not benefit from the deduction at all. This is because they do not itemize deductions on their federal income tax returns. According to Joseph Rosenberg, a research associate at the Urban-Brookings Tax Policy Center, only about 30 percent of taxpayers itemize, rather than take the standard deduction. And the majority of these itemizers are upper-middle and upper-income households.
http://www.nytimes.com/2012/10/28/realestate/mortgages-who-really-benefi...

I fear rising interest rates more than the loss of the mortgage interest deduction. Rising interest rates will make homes less affordable for lower income households and kill future appreciation.

Even when you itemize, on some things, there's either a threshold or a "Minimum" amount depending if you file single or married. So, if you reach that limit or not even the minimum, you can't itemize, which forces people to take the standard deduction. Take medical stuff for example, you can claim I think $5k or more. Other than that, you can't claim anything under $5k. It's only gna be a matter of time, before it gets worse.