A tax exemption for struggling homeowners could expire at the end of the year. The Mortgage Forgiveness Debt Relief Act keeps the I-R-S from taxing mortgage debt a lender forgives. According to Realty Trac, 31 percent of Georgia property owners owe more on their loans than their property is worth.
Georgia led the nation in foreclosures during the three months that ended Sept. 30. That’s according to data released Thursday by RealtyTrac, which monitors defaults. Experts say many Georgians lose their homes as they try unsuccessfully to re-negotiate their mortgages.
Georgia had about 50 percent more mortgage fraud over the last five years than it should based on the number of new home loans in that time. A new report from LexisNexis finds the amount of fraud in the Peach State might be decreasing, however.
Research firm CoreLogic reported this week that Georgia home prices fell another 5.6 percent in April compared to a year ago. Some analysts say new Fannie Mae and Freddie Mac rules for short sales could help stabilize Georgia’s housing market, where prices have fallen 36 percent in the last six years.
Sales of foreclosed homes accounted for nearly half of all home sales in Georgia during the first three months of the year. That’s according to a report that found foreclosures are on the rise following a moratorium last year.