San Diego, CA (PRWEB) October 14, 2008
The Emergency Financial Stabilization Act (the $ 700 Billon Federal Bailout Strategy) was enacted on October three, 2008 and will benefit a lot of San Diego property owners, according to HouseRebate.com. The planned mitigation of foreclosures by way of loan modifications must reduce the flow of foreclosures into the marketplace. Fewer foreclosures, in turn, will aid stabilize housing rates in San Diego. At the moment, the plethora of San Diego Foreclosures homes is fueling the continued cost declines in the market.

One feature of the act that advantages taxpayers directly is that a lot of defaulting property owners will now be in a position to hold their homes. An additional feature of the bill will extend the tax break to property owners that drop their homes who had a portion of the debt forgiven. The debt forgiveness on house loans beneath the Mortgage Forgiveness Debt Relief Act of 2007 will be extended until Dec. 31, 2012.

California taxpayers recently received similar tax breaks on their California State taxes. On September 25, 2008, Governor Arnold Schwarzenegger signed it into California law to provide equivalent tax relief for debt forgiveness relating to foreclosures. Senate Bill 1055 will cover forgiven mortgage debt discharged in 2007 and 2008. This bill could require to be amended in the future to match the extended Federal date of December 31, 2012. Taxpayers should note the maximum qualifying debt beneath Federal law is now $ 2,000,000 and it is only $ 800,000 for California. California has a maximum revenue exclusion of $ 250,000.

The San Diego foreclosure inventory continues to be abundant, providing potential San Diego homebuyers and investors fantastic getting chance. At the end of September 2008, there were 7,016 San Diego bank owned properties and from this number, much more than 2,000 San Diego foreclosure properties are actively for sale on the San Diego Several Listing Service (MLS). The remaining five,000 plus bank owned properties are becoming processed to be obtainable for sale or are presently in escrow.

four,589 San Diego foreclosure properties are scheduled for auction in the subsequent 90 days a portion of these properties may possibly be foreclosed on by the banks. There are more than ten,000 San Diego properties and properties in the pre-foreclosure phase. These owners of the San Diego real estate properties have received a Notice of Default to notify them that a foreclosure auction is pending. Several of these homeowners could be eligible for loan modifications after the Federal $ 700 Billion Bailout Plan begins the implementation procedure.

Brian Yui, CEO of HouseRebate.com, expects the volume of foreclosures to stabilize due to the recent Bank of America/Countrywide settlement and the Emergency Economic Stabilization Act, which supply loan modifications to current delinquent home owners. “The availability of loan modifications or loan workout possibilities for home owners ought to slow the rate of foreclosures and support stabilize residence prices,” states Brian Yui. “Savvy investors are jumping into the industry knowing that entry-level residences can obtain breakeven money flow with only 25 percent down payments,” he added.

According to Sandicor, there had been two,753 San Diego residence sales in September 2008. Approximately 36 percent of these sales have been San Diego bank owned REO properties due to San Diego foreclosures. For buyers who want to take advantage of bargain basement prices on San Diego residences, a present list of San Diego Foreclosure properties is updated day-to-day at HouseRebate.com.

About HouseRebate.com:
HouseRebate.com, a member of the National Association of Realtors