“Not Having a Mortgage Really Hurts, Tax wise”

“Not Having a Mortgage Really Hurts, Tax wise”



So many, for one reason or another have had to rent. Many used to be homeowners but as a result of a bankruptcy, foreclosure, deed in lieu of foreclosure or short sale they had no choice but to rent and many are desperately working toward homeownership again.


I have done a number of blogs on this topic and got an email from a client in Nashua NH that wants or needs to become a homeowner again. The sentence below tells her mission…


I can’t rent anymore and my salary without a mortgage write-off is going to KILL ME. Please advise.


Unfortunately she did not get good coaching as to how to repair credit. Many of her collection accounts have been sold from one company to another. She thought they would just go away, not the case at all. After spending some time reviewing her credit and explaining what she needs to do, she said she sees light at the end of the tunnel.


Many just put their heads in the sand hoping the nightmare will go away, it doesn’t and it takes work. If you put in the work that is necessary, home ownership can become reality.


Image coutesy of stuartmiles/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 26 commentsJoe Petrowsky • October 16 2015 06:42AM


Good Tuesday morning Joe. I can understand. We are one of the few in the nation that does not have a mortgage.

Posted by TeamCHI - Complete Home Inspections, Inc., Home Inspectons - Nashville, TN area - 615.661.029 (Complete Home Inspections, Inc.) over 5 years ago

Oh yes, that tax write off has a huge impact.  I can't imagine losing that.  I'm sure your coaching helped and soon enough she will be able to own again.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) over 5 years ago

Good morning Joe. Given current tax laws, some do not benefit from the mortgage write-off. Regardless, keeping a clean credit rating is imperative! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) over 5 years ago

Good morning Joe.  With what income I make being without a mortgage would not hurt me a lot.  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) over 5 years ago

Hi Joe.  With your help and coaching, she will be a home owner once again.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 5 years ago

It's something I think about from time to time, but honestly think renting is right for me Joe.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) over 5 years ago

Good morning Joe,

Not everyone can be a great teacher such as yourself; keep up the good work.

Make yourself a great day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) over 5 years ago

Good morning Joe. The head in the sand approach seldom works. You are a good supporter and I'm sure this client appreciates it.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 5 years ago

Yes....we have a number of buyers with very good six figure incomes, great credit scores that are now first time buyer..Hooray 

Posted by Sally K. & David L. Hanson, WI Real Estate Agents - Luxury - Divorce (EXP Realty 414-525-0563) over 5 years ago

Good Morning Joe: Very true. My friend can't write off anything because he does not have a mortgage--which is one of the great benefits of it.

Unfortunately, he has to wait 3 more years to be able to get one.

Posted by Maria Gilda Racelis, Home Ownership is w/in Reach. We Make it Happen! (Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington) over 5 years ago

Joe, great advice, and hope you are able to get this buyer into a home, and save some money on taxes!

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) over 5 years ago

Home ownership certainly provides major tax benefits and that is why home ownership is one of the best ways to build family wealth.

Posted by Roy Kelley (Realty Group Referrals) over 5 years ago

I am a huge believer in owning real estate not only our principal residence but rental property too. You make an excellent point here, Joe.

Posted by Debbie Reynolds, C21 Platinum Properties, The Dedicated Clarksville TN Realtor-(931)320-6730 (Platinum Properties- (931)771-9070) over 5 years ago

Helping others in your business, as well as mine, is such an important part of sharing and giving back, Joe...kudos to you.

Posted by Ginny Gorman, Homes for Sale in Southern RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) over 5 years ago

Good for her to dig herself out and having a well paying job. This is such an excellent lesson that this is not enough. It's worth it to get that credit up as well and not only in buying a home. In this day and age, paying for cash actually loses you money, at least tax wise, as in her case.

Posted by Hella M. Rothwell, Broker/Realtor®, Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea over 5 years ago


Glad to hear that you are giving her such great guidance.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) over 5 years ago

Joe - without the mortgage write off the income will not go as far.  Glad you get people back.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 5 years ago

That mortgage interest wrie off is huge!  I remind my buyers of this when they are trying to justify the mortgage payment.  Glad you helped her see the light.

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) over 5 years ago

Hiding from obligations never works in finance or other ventures.   Buyers need to be helped sometimes to regain their confidence and face up to their situation.   Once confronted, old problems can be overcome and lead to a better path forward.

Posted by DEANNA C. SMITH CERTIFIED MOBILE NOTARY, Highest Ranked Certified Mobile Notary in Virginia (Certified Mobile Notary Signing Agent) over 5 years ago

Anybody can turn her life around and clean up her credit. It takes work and diligence, but once you do it, you never want to go back, I hear. Good for this client to realize she needs to do something and stop the destructive behavior that got her into the mess to start with.

But what I want to know is, Joe, is what in  the world were you guys doing in Biloxi with Conrad, his wife and Sally and David?

Posted by Elizabeth Weintraub Sacramento Realtor Top 1%, Put 40 years of experience to work for you (RE/MAX Gold) over 5 years ago

Joe: I am always surprised to hear some consumers think their issues can go away by just ignoring them. Good to hear you now have this future buyer pointed in the right direction.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (Coldwell Banker Access Realty ~ 478.960.8055) over 5 years ago

Joe as you well know wishful thinking does not make the collections and other credit issues go away.  I takes good advice and hard work for that to happen.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 5 years ago

Every one thinks they know how to improve their credit, until they go apply for a mortgage and find out differently.  Good think she found your post and called you!

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 5 years ago

That is a sad story Joe, you provide some interesting scenarios.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 5 years ago


Thanks for sharing your insight on rebuilding your credit score.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 5 years ago

Hello Joe.  Just taking a few minutes while waiting in line, and thought I would drop in.  I share your desire to help those who have run head long in LIFE.  Some are quick to pass judgment on folks with derogatory credit. Years ago I had a loan processor with perfect credit, and everything going her way.  She was very condescending toward applicants who had dings on their credit, and one day a client called me: she was crying, and I had difficulty understanding her, but learned that Ms. Perfect Credit had told her that she did not deserve a loan because she had not honored her commitments.  I cautioned the processor that someday that could be her, and she needed to mend her ways.  We got the applicant's loan through (her referrals led to over a dozen new loans in subsequent months and years).


A few years later the processor's world crumbled beneath her: alcohol and drugs. She lost her home, her job and her reputation.  I have since lost contact, but my efforts could not overcome her addictions.  "As you would that men should do unto you, do likewise unto them.". Jesus had it right all along.  Hopefully, someday the processor will hear him.

Posted by Fred Cope, Looking For Homes With A Smile (Reliant Realty in Nashville, TN) over 5 years ago