Winter Park Ski Season Opens November 14, 2007!

The Ski Season is Here!

Opening this year on Nov 14, Winter Park will be boasting the USA's highest 6 pack chairlift called the Panoramic Express departing from the Sunnyside Lift area and ending at the top of Parsenn Bowl. Opening 75 more acres of terrain and easier, faster access to the "bowl" and Mary Jane's backside, skiers and riders will love this new lift!

Over the past three years Intrawest has added 3 new chairlifts and expanded the Winter Park Resort to over 3,060 acres of skiable terrain. If you haven't been to Winter Park in awhile, it is sure time to come back!

Winter Park Real Estate Sales Ahead of Last Year

Through the 3rd quarter of 2007, results in the Grand County MLS show that Winter Park Real Estate sales are 2.6 % ahead of last year, with over $187,000,000 sold so far this year. The median price of combined sales (Residential, Condominiums and Vacant Land) is a record $301,650, although total unit sales are down by 54, or 10.7%.

The Residential sector (Houses & Townhomes) is the clear leader with sales up over 9%., while condominium sales are down 10.8%. Vacant Land sales are up 13.8% through the 3rd quarter but this is skewed by one sale earlier in the year for $15,000,000.

For a full copy of my report, you can email me at Paul@PaulLewis.net. You also can go to my website, www.PaulLewis.net, to look at current listings.

Think Twice Before Walking Away From Your Mortgage

Thinking about walking away from your mortgage? You may want to think twice - particularly if it is a second home or you have refinanced it.

Many owners think that they can walk away from a mortgage and, aside from a ding to their credit, it is the lender's problem. Well, it's not quite that simple.

The IRS is likely to tax you for the difference between what is owed on the mortgage and the market value of the home, whether it is sold at auction, as a short sale (prior to foreclosure) or when relisted as a bank-owned property, as taxable income. The lender will issue a 1099-C to the homeowner for this amount, which must then be treated as ordinary income on the homeowner's next tax return. In most cases, the sale price of the home will be considered to be the market value. In some cases, the market value of the home will be reported as a higher amount than the actual sales price.

So if your home sells for $500,000 and you owe $600,000, you'll have $100,000 of additional income to report on your next tax return under current IRS rules. That would equate to a whopping $28,000 income tax bill if you're in the 28% tax bracket.

Many are hoping that the proposed "Mortgage Forgiveness Debt Relief Act of 2007", or H.R. 3648, will provide relief from this tax. However, if approved as currently stated, the relief will only be for homeowners who meet certain requirements. H.R. 3648 is meant for principal residences (not second homes or investment properties) and also only applies to the initial mortgages, not refi's. H.R. 3648 defines Qualified Principal Residence Indebtedness (or debt relief to be excluded from income tax) as follows: "For purposes of this section, the term 'qualified principal residence indebtedness' means acquisition indebtedness." In plain English, acquisition indebtedness is limited to the initial mortgage on the property when it was purchased, not a second (or third) mortgage that was acquired later, and not a refinance of the initial mortgage(s).

Certainly it is worth the time to consult a knowledgeable Realtor or tax specialist before taking a step you may regret.