Good Monday AM,
The bond market is closed for Columbus Day and stocks are taking advantage surging even further ahead with the Dow +340. I guess you have to become a believer (or as my daughters tell me, a Belieber) at some point and I am getting closer. No data today but there is enough going on elsewhere to share. Here we go..
This is from Market Watch so please do not take this as any political bias…
If you’re a serious real estate investor, you probably know all about tax-deferred Section 1031 like-kind exchanges. A properly structured Section 1031 exchange allows you to swap one piece of real estate property for another without paying any federal income tax — even if the property you’re unloading is greatly appreciated.
This longstanding tax break has contributed to the making of many fortunes. However, consider these two things:
No. 1. Democratic presidential candidate Joe Biden’s proposed tax plan would eliminate the Section 1031 exchange privilege.
No. 2. The IRS recently issued new regulations that define what constitutes real property to determine eligibility for Section 1031 like-kind exchanges. But those regulations won’t do you any good if your ability to make a Section 1031 exchange is eliminated, and you fail to get your exchange done before that happens. So, you might have to move fast to take advantage of the Section 1031 exchange break before a Biden tax plan could potentially take it away.
People struggling to meet their housing costs are least likely to vote on Election Day, according to a new study from Apartment List.
Nearly 60 million Americans expect someone in their household will lose a job or take a pay cut in the next four weeks, according to survey results released by the U.S. Census Bureau.
And, FHA has shared their guidance on financing after a forbearance…
The FHA published Mortgagee Letter (ML) 2020-30, FHA Underwriting Guidelines for Borrowers with Previous Mortgage Payment Forbearance. The ML informs mortgagees of underwriting guidelines for homeowners who were granted a mortgage forbearance due to the COVID-19 National Emergency. Additionally, this ML defines the requirements that borrowers must meet to request a new FHA-insured mortgage after successfully completing their mortgage payment forbearance period. Borrowers granted mortgage payment forbearance may be eligible for a new FHA-insured mortgage provided they continued to make regularly scheduled mortgage payments and the forbearance is terminated, or completed forbearance and made at least 12 consecutive monthly mortgage payments after forbearance or cash-out refinances; or completed forbearance and made at least three consecutive monthly mortgage payments after forbearance for purchase mortgages and no cash-out refinances, or completed forbearance and made less than three consecutive monthly mortgage payments after forbearance for credit qualifying streamline refinances. (Additionally, if a borrower entered into a modification agreement on an FHA mortgage, they must have made six payments under the modification to be eligible for a streamline refinance.)
Please remain safe and healthy, make today great!