Should the Mortgage Deduction Go Away?

A mortgage casts a shawdow on the sunniest fields” -R.G. Ingersoll -Illinois farmer, 1877-

The mortgage deduction has been looked upon by millions of Americans as a gift, a saving grace, a wealth creation strategy and a nice paycheck because homeowners are allowed to deduct their interest payments and reduce their tax liability. Most homeowners look at that as a plus by having a large mortgage.  “Some accountants believe the best thing to do tax wise is to keep your mortgage as large as possible for as long as possible.” (Own Your Home Years Sooner without making extra interest payments)

However, consider this scenario from a book I found by Harj Gill (Own Your Home Years Sooner) without making extra interest payments

In this scenario Person A does not have a mortgage and Person B does. The circumstances for both individuals are exactly the same. Check out the numbers for yourself, show it to your accountant, financial advisor, etc. and you decide.

Person A paid $3,123 (13,896-10,773) more in taxes than Person B but still had $8,444 (51,104-42,660) more in their pocket than their counterpart who has a mortgage and received a tax benefit of $11,567.

Monetary Advantage     +58,444

Please be aware I’m just playing devil’s advocate here if you will. I am not saying get rid of the mortgage deduction, Congress is proposing that as we speak for their own agenda and the National Association of Realtors want to keep the mortgage deduction in place because they see it as a benefit to the American homeowners. However, here is a monkey wrench thrown in by a third party, Harj Gill, who looks at it differently. Hmmm.

Do your own research and draw your own conclusion.

The better question to ask may be if Americans do lose the mortgage deduction will it really make a difference if they may get to keep more money in their pocket?

After all don’t the rich say, “It’s not what you make, it’s what you KEEP?” Hmmm.,0,46732.story

Adverse Possession Got Tanya Dennison her Home Back!

Homeowner, Tanya Dennison, confronted the CEO of Wells Fargo who foreclosed on her home after 27 years, took back possession of her home after the 18 month process she broke back into her home and “adversely possessed” her home, took Wells Fargo to court where she represented herself, sought help from senators and housing agencies and WON her case.

Did Tanya Dennison embarass Wells Fargo into Defeat?

Just in case you’re wondering exactly what adverse possession is: Adverse Possession is taking possession of a property “adversely” or hostile like a squatter but in Ms. Dennison’s case she was a squatter in her own home.

Atlantic County NJ Irene is Comin’!

Yes she is. I’m here in Atlantic City, NJ where my son and I decided not to evacuate even though we were invited by a good friend to stay in Sicklerville, NJ. Honestly, I really didn’t want to go anywhere. I just wanted to stay home. I didn’t feel like packing and going through the hassle and hustle and bustle of getting somewhere else. The bus stations were crowded, the roads were crowded so we just decided to stay home.

Well, if you’re in the path of Irene and you decide to stay home too, be sure to have your supplies — water, flashlight, batteries, extra food, first aid and take precaution to protect your property when and where you can -board up or tape windows and let’s not forget the most important –Prayer.

Prayer is always good. Prayer works. Everyone be safe.

Atlantic County NJ Hold On….There may be some relief with Refinancing>>

Plans to stimulate the market may include a huge refinancing gain for homeowners in order to stimulate the economy and it may not cost anything. Well, we’ll see about that.  There are several proposals on the table. Everything is still up in the air so the two people who spoke to the reporter for this article asked to remain anonymous because they are not supposed to be speaking about it. One proposal could mean that millions of homeowners of government-backed mortgages will be allowed to refinance  at today’s lower rate of four percent.

But will this be enough to address the main reasons for foreclosures which are 1) homes worth less than their mortgages and 2) Unemployment?

Atlantic County NJ Got Bedbugs?

Well, they’re back. Bedbugs that is. They were all but eradicated by using the dangerous pesticide DDT which has been blamed for numerous birth defects and then banned. International travel is being blamed for the return of the bedbug but now that they are back what are we going to do about them?

It is now a local problem because anyone anywhere can bring them into your home or business and just the reverse –you can bring them in unexpectedly without ever knowing it. This is a problem. Governments are clarifying liability for bedbug infestations and sellers may have to disclose how long it’s been since an infestation and how they remedied the situation.

For now, it seems we are at the mercy of this bug until we figure out our next move  because it doesn’t matter where you are — movie theater, supermarket, friend’s house — you can bring them with you or leave with them. No one is immune. And Garage sales can be a problem too so beware.

Is there a friendlier, less toxic strain of DDT that we can use to really obliterate these bugs from the planet?

Atlantic County NJ Renters who Upgrade to Homeowners Keep A Home Warranty in Place

If you are a new homeowner who has been a renter for a long period of time, keeping  a home warranty in place after it expires could be the best thing you can do for yourself.  When you rent, you don’t have to worry about the furnaces and roof leaks or even blow ups. However, when you are a homeowner, it all falls on you and if you don’t have protection for yourself set up before these events occur, you will feel it in your pocket. And if you’re a brand new homeowner who has never experienced this before it can be very overwhelming. You can’t go wrong with a home warranty. After you read this, get in touch with your agent who can help you make sure you are covered.

(Excerpt of Tara Nelson’s Blog on Trulia)

Put – and keep – a home warranty in placeOne of the most frightening things about going from renter to homeowner is the prospect of being solely responsible for the care and feeding of your home and all its systems and appliances. Responsibility for both the costs and the actual logistics of repairing things like a leaky roof, a broken hot water heater or a haywire electrical fixture looms large in the minds of first-time buyers, in particular

A home warranty plan kicks in when escrow closes, and depending on the coverage you select, will cover your home against the breakdown of major systems and even some appliances, like furnaces and water heaters. 

(Excerpt of Tara Nelson’s Blog on Trulia)

Atlantic County NJ – Borrowers can get the lowest prices but America needs to get Back to Work and Homeowners should consider Paying Off Their Mortgage – Sooner!

Why? Because it will create wealth. You won’t have that dreaded mortgage (which  means death pledge) hanging over your head forever. According to the article for which I provided a link to read, lending for homeownership is at its lowest point since 1997 and buyers are looking at renting instead of owning. Why? Unemployment is very shaky and America needs to get back to work. Getting America back to work should be the priority of President Obama and all of Congress, all of the Senators, and anyone else who has been elected to public office. Without the ability for America to be able to return to work and make well over minimum wage, America will become a nation of renters -again. And for the majority I think it’s safe to say that Americans want to own their own home but we have to do it right.

I believe this time around Americans should pay off their mortgage sooner than later which will allow us to own our homes, create wealth and put other things in motion like earlier retirement, more vacations, and leave more wealth for future generations if they so choose or give it to them now or leave them nothing at all if you listen to Warren Buffet who feels that inheritances are welfare for the rich.

You decide but the way we are going now is counterproductive to American Life. What do you think?