According to a November report, as reported through HousingWire.com, one option excludes citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.Why this is a BAD idea!
Steve Harney and his Crew over at Keeping Current Matters summed it up best:
1. Homeownership is a Major Part of the ‘American Dream’
It has been proven that homeownership is critically important to American culture. A home is more than just a financial investment. It is a parents’ investment in their children. It is a family’s investment in their community. It is the people’s investment in America. With housing attempting to recover from its most trying time, it seems ludicrous to remove one of the most enticing reasons to own a home.
2. This Could Lead to another Wave of Foreclosures
Even if we just look at this from a purely financial perspective, it makes no sense. There are thousands of families struggling to pay their mortgage every month. Many of these homes are in a negative equity situation. Many in this situation have already decided to strategically ‘walk-away’ from their mortgage obligation. Others are sacrificing in different areas of their families’ lives in order to continue to pay their mortgage. Taking away the mortgage tax deduction could be the straw that either financially or emotionally breaks that camel’s back. How many new foreclosures will be created? How will that impact the values of neighboring properties? This makes no sense financially.
What can WE do as Home-Owners, Prospective Home-Owners and Real Estate Practitioners in Ocean County, NJ? WE CAN RAISE OUR VOICE AND JUST SAY "NO" TO THE "O"!