Mortgage Forgiveness Debt Relief Act Extension:
National REIA’s lobbying arm in Washington, D.C. continued to meet with offices of members of the U.S. Senate and relevant committee staff attorneys to discuss extending the short sale tax break through 2015. Representatives for National REIA met with the sponsors of the measure earlier this month, and are now focused on one goal: securing enough votes in the Senate to pass this important tax break for distressed homeowners and the residential real estate investing community.
National REIA’s Washington lobbyist will continue to hold Senate meetings through the summer and into the fall until the measure comes up for a vote. Our expectations on the timing of a vote have not changed. All of the intelligence gathered during meetings with Senate offices indicates a post-election vote on the short sale tax extension. The vote should take place during the brief time period after the November election before 2015. The language of the measure extends the short sale tax break through 2015, and makes it retroactive for 2014. Getting this measure to the President’s desk before 2015 should dramatically increase the utilization of short sales in 2015.
In addition to its work in the Senate, National will begin lining up votes in the U.S. House of Representatives in September. National REIA’s lobbyist along with National REIA Board Member Tom Zeeb are scheduled to meet with the office of the chairman of the subcommittee governing Fannie and Freddie, a key office to secure to ensure a successful vote result post-election. National’s lobbyist does not anticipate much opposition to the short sale tax extension in the House.
June Existing Home Sales Data Summary
Existing home sales rose 2.6% over May 2014
- June 2014 sales pace was 2.3% lower than June 2013
- Existing home inventories are higher than they have been in more than one year, suggesting a continued rise in sales over the coming months
- Median existing home price was $223,000 (4.3% higher than June 2013)
- Distressed sales comprised 11% of all existing home sales in June 2014. This is down 15% from June 2013. Foreclosures accounted for 8% of sales, short sales accounted for 3% of sales
- Distressed property discounts June 2014: The average foreclosure discount was 20%, the average short sale discount was 11%