Short Sales: Other Options That May be Available

In addition to a formal short sale, a homeowner may be able to pursue other alternative courses of action other than short sale or foreclosure.

Loan Modification: In certain circumstances, the lender may agree to change the terms of the original loan to make the payments more affordable to the homeowner. The interest rate may be lowered or the loan term extended, and missed payments may be allowed to be added to the existing loan balance. The specific terms of a loan modification will be determined by the negotiation between the homeowner and the lender.

Loan Workout: A homeowner that falls behind on payments may have the ability to enter into a repayment plan, forbearance agreement or other payment structure to get the homeowner back on track with monthly payments.

Deed-in-Lieu of Foreclosure: A lender may allow the homeowner to "give back" the property to the lender. Care must be taken by the homeowner to verify that the lender will be prevented from seeking a deficiency after the transactions occurs.

Conclusion: Each alternative contains its own benefits and risks. A homeowner should consult competent professional advice to assess the homeowner's situation and available options.

Washington State 2nd highest for Per Capita State and Local General Sales Tax

According to the Tax Foundation: The per capita state and local general sales tax collections for Washington State are the second highest in the nation at $2,108.00. Idaho came in 28^th at $890 and Oregon tied for 47^th at $0.

I have copied the Tax Foundation map below and the original can be found here.

Presidential Hopeful Tax Plans: Herman Cain

Presidential Hopeful Herman Cain has now laid out his tax plan. I glean this information from his campaign website which can be found here.

Phase 1:

• Reduce individual and business income taxes to a maximum of 25%
• Eliminate taxes on repatriated foreign profits
• Eliminate taxes on capital gains

Phase 1 Enhanced: so called "999 Plan":

• Flat Business Tax of 9% (tax on corporate profits)
  • Gross income less all investments, all purchases from other business and all dividends paid to shareholders.
• Individual Flat Tax of 9%
  • Gross income less charitable deductions.
• National Sales Tax of 9%
• End payroll tax completely!
• End the Death Tax
• NB: This "999 Plan" presupposes "throwing out" the current tax code.

Phase 2

Implement the "Fair Tax"

2012 Tax Brackets!!!

Next Year's Tax Brackets:

According to the Tax Foundation: 2012 Tax Brackets should look as follows:

Table and all data courtesy of the Tax Foundation accessible in the article which can be found here.

Key Tax Parameter Amounts for 2012
Tax Parameter	2011 Amount	2012 Amount
Standard Deduction
For singles	$5,800	$5,950
For married filing jointly	$11,600	$11,900
For heads of households	$8,500	$8,700
For married filing separately	$5,800	$5,950
Personal Exemption	$3,700	$3,800
Tax Bracket Thresholds for Single Filers
10% rate	$0	$0
15% rate	$8,500	$8,700
25% rate	$34,500	$35,350
28% rate	$83,600	$85,650
33% rate	$174,400	$178,650
35% rate	$379,150	$388,350
Tax Bracket Thresholds for Heads of Households
10% rate	$0	$0
15% rate	$12,150	$12,400
25% rate	$46,250	$47,350
28% rate	$119,400	$122,300
33% rate	$193,350	$198,050
35% rate	$379,150	$388,350
Tax Bracket Thresholds for Married Filing Jointly
10% rate	$0	$0
15% rate	$17,000	$17,400
25% rate	$69,000	$70,700
28% rate	$139,350	$142,700
33% rate	$212,300	$217,450
35% rate	$379,150	$388,350
Tax Bracket Thresholds for Married Filing Separately
10% rate	$0	$0
15% rate	$8,500	$8,700
25% rate	$34,500	$35,350
28% rate	$69,675	$71,350
33% rate	$106,150	$108,725
35% rate	$189,575	$194,175
Source: Tax Foundation calculations using BLS CPI-U Data

Presidential Hopeful Tax Plans: President Obama: Update re 28% deduction limit

Following up on President Obama's tax plan: 

The Tax Policy Center has published a post that fleshes out some of the implications of President Obama's proposed 28% cap on deductions.  From the post: 

"Not only would it reduce tax savings for mortgages, charitable gifts, high medical costs, and the like, it would also curb tax breaks for owners of municipal bonds, workers who buy health insurance, and those who earn money overseas...

But Obama does pick and choose the preferences he wants to target. He nails all itemized deductions, all right, but he also goes after some–but not all–above the line deductions. Of the roughly two dozen write-offs available to those who take the standard deduction, Obama targets just eight, including health insurance for the self-employed, medical savings accounts, health savings accounts, and some higher education expenses.

He also reduces the benefit of two other hot-button breaks—the tax exclusions for municipal bond interest and the value of employer-sponsored health insurance. In other words, for those making more than $200,000, some muni bond interest and some of the value of their medical coverage would be taxed.     

However, Obama would protect other exclusions, including those for retirement savings. Picking winners and losers this way is likely to defeat any claims of rough justice and make passing the plan that much tougher."