Those Who Lose Homes May Face State Tax Hit

New-Home Sales Post Another Strong Gain
August 26, 2009, Wall Street Journal

New-home sales climbed more than anticipated in July, staging their fourth straight month of strong gains to add to evidence that the housing market is emerging from its long slump. Sales of single-family homes increased by 9.6% to a seasonally adjusted annual rate of 433,000 compared to the prior month, the Commerce Department said Wednesday. That was the highest number sold since September 2008 and well above projections for a 1.6% gain to 390,000 by economists surveyed by Dow Jones Newswires. The increase was the fifth in seven months, as buyers are returning to the market in search of bargains.

Subprime Lenders Getting U.S. Subsidies, Report Says
August 26, 2009, Washington Post

Many of the lenders eligible to receive billions of dollars from the government's massive foreclosure prevention program helped fuel the housing crisis by issuing risky subprime loans, according to a report to be issued Wednesday by the Center for Public Integrity.  Under the $75 billion program, called Making Home Affordable, lenders are eligible for taxpayer subsidies to lower the mortgage payments of distressed borrowers. Of the top 25 participants in the program, at least 21 specialized in servicing or originating subprime loans, according to the center, a nonprofit investigative reporting group funded largely by charitable foundations.

Home Prices Are Up. No, Down. No, Flat. Where’s the Truth?
August 25, 2009, Christian Science Monitor

When you hear news about home prices rising or falling these days, it might be good to take the data with a grain or more of salt. Latest Case-Shiller index shows monthly gains, though prices are down 15.4 percent from last June. But such barometers are not a one-stop guide to the housing market.

Those Who Lose Homes May Face State Tax Hit
August 25, 2009, San Francisco Chronicle

Californians who lose their homes in a foreclosure, short-sale or deed in lieu of foreclosure this year could be hit with a state income tax on canceled or forgiven debt. A state law that temporarily exempted many homeowners from this tax at the state level expired at the end of last year. Attempts to revive it have not been successful.