Now that we are getting to the bottom of figuring out why the housing market crashed causing hundreds of thousands of Americans to lose their homes and others to see their investments shrink rapidly through property devaluation, I would like to know why we could not take those losses as tax write-offs?
Whether through foreclosure or the fact that their homes has been severely devalued, why can't people take those as investment loses brought on by risky Wall Street and mortgage lender predatory lending practices and negligence? It was a combination of both the government and private lending institutions through excessive risk taking that has harmed all of us. My home was worth $368,000 two years ago, and now I am lucky if is worth $240,000. Those were investments made that will now not be realized for some time because of this irresponsible practice of risk taking.
Some of us planned our retirements based on the expected value of our property as a result of modest appreciation percentages. The consumers were in the dark on these risky mortgage-product lending schemes perpetrated against them over and above what is normally expected within this industry. If banks and mortgage lenders can take tax write-offs for their investment losses, why can't we, especially at a time when there was negligence in executing failed businesses practices?
I think there should be a class action lawsuit filed on behalf of homeowners against these lenders for negligent and predatory lending practices at a minimum.
The federal government should grant the authority for taxpayers to take those losses and deduct them from their income taxes over a period of time to recover some of their investment losses. Homeowners across America should demand this as part of rectifying what has caused this housing collapse regardless of current tax laws that did not take into account something like this happening.