Mortgage Forgiveness Debt Relief Act Extension:
Legislation approved by the Senate Finance Committee that would have extended this legislation died on the Senate floor. This bill, passed in December 2007 and applicable until the end of 2013, allowed borrowers utilizing short sale transactions to be relieved of the debt cancellation tax burden associated with short sales. However, Senator Dean Heller (R-NV) and Senator Debbie Stabenow (D-MI) are sponsoring a bill that would reinstate the extension.
National REIA is actively lobbying the Senate to get this bipartisan measure passed before the end of the year. While it is unlikely the bill will receive consideration on its own because of the Senate schedule, the language from the bill can be attached to another bill. National REIA is currently working with members of the Senate to find an appropriate vehicle for the extension and get it to the President’s desk as soon as possible. Opportunities over the summer will be limited, but there remain possibilities during the post-election session before the new Congress convenes in 2015.
May 2014 Existing Home Sales Data Released
May existing home sales rose 4.9% from last month, but were down 5% from May 2013. Total housing inventory rose 2.2% in May to 2.28 million units available for sale, which is 6% higher than this time last year. Median existing home sale prices climbed 5.1% from May 2013 to $213,400. First-time buyers comprised 27% of total buyers, individual investors comprised 16% of buyers, and 32% of purchases were all cash deals.
Distressed sales comprised 11% of all transactions, down from 18% from last year. Foreclosures comprised 8% of existing home sales while short sales comprised 3% of sales.