Two New 2007 Tax Breaks

While taking a look around SFGate, I saw a headline that could brighten up a Monday Morning. "Two new 2007 tax breaks help struggling homeowners" of course sounds goods, but what does it really mean?

In a year of bad mortgage news, there's a bright spot or two for homeowners: Foreclosure comes with a tax break, and 2007 mortgage insurance payments may be tax-deductible.

Congress acted on both provisions late last year, extending the mortgage insurance deduction for three more years and creating a tax break for homeowners facing foreclosure.

The mortgage insurance deduction will help certain low- and moderate-income homeowners, especially first-time home buyers and those struggling with higher house payments as adjustable-rate mortgages reset.

This type of insurance should not be confused with the insurance you take out on your home and its contents in case of fire or other disaster. It's also not the same thing as mortgage protection insurance, which is a form of life insurance some people buy to pay off a mortgage when they die.

So now if you are facing down the barrel of a foreclosure shotgun, you at least have something to smile about :(

Here is the article...