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Sellers in Wellington Florida! Good News For Short Sales! Just came in over the wire...

President Bush just signed the Mortgage Relief Act a few hours ago. The Forgiveness act will allow sellers to sell their homes by short sale without being 1099'd for the deficiency. This Act is retroactive from January 1, 2007 and will last until December 31, 2009. So if you sold your house in a short sale this year you will not have to pay taxes on the part that you fell short on.

To read more about this The Mortgage Relief Act click here.

So if you need to sell your house due to relocating or loss of a job and other reasons you will be able to do so without the worry about paying taxes on your loss or having a 1099 raise you up into a higher tax bracket.

This is the time to take advantage of this new Act. As you head into the new year 2008 you can get a fresh start.

Make sure to choose a Real Estate Agent who understands the short sale process. Most agents do not know how to do a short sale. Few are qualified in this area. Nestor Gasset and Katerina Gasset understand the short sale process and will help you get your home sold using the short sale process.

Contact Nestor and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida. We are accepting referrals.

Visit our profile to find out more about our services. Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile. To view all the Wellington Florida Luxury Homes For Sale Click here and then click on Multiple Listing Search where the globe is on the right side of the screen that opens up. We know Palm Beach County and will help you get your home Sold if you need to Sell your home and help you buy your Wellington Home or Land ; call us today.

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes on 12/20/2007 10:02 PM

Comments (30)

mortgage relief act, short sales

Originally posted at: South Florida Real Estate and...: Sellers in Wellington Florida! Good News For Short Sales! Just came in over the wire...

This post has been included in Florida Information Palm Beach County, FL Information Wellington, FL Information

30 Comments on Sellers in Wellington Florida! Good News For Short Sales! Just came in over the wire...

DEC

2007

Katerina - That is great news! Nice to here something positive for a change. This makes perfect sense as getting taxed on money you never received would be just another burden on the home owner.

Bill Gassett Metrowest Massachusetts Real Estate

What I did not like about the 1099 is that it was money you did not earn! You lost that money! And it could push you into a higher bracket! Not right! I am glad this is not the case now! This is great news! Katerina

Thanks for the news.

By the way, I guess you know it but somebody may not, this is the case when you settle with the credit card company and not pay in full. IRS would consider the difference as income and would be expecting you to pay.

Thanks so much for the update. I have been waiting for the final word on this issue and am so glad there is one less thing to be concerned with regarding short sales--it's tough enugh as it is.

And supported by the "evil Bush Regime" ... tongue very much in cheek.

This is really good news. Having to pay taxes on money which was never actually received was like adding insult to injury. Glad the bill was signed.

Katerina, Nice to have some positive news! That should help some people get back on their feet.

DEC

2007

KATERINA - This is good news, and a bit ironic that it needs to exist at all. I say that because if people can't come up with the mortgage payment to keep from having their home foreclosed upon, where in the world are they going to get the money to pay the taxes that were being charged on the 1099. If they had that money, wouldn't most people just save their home? Without this rule, the government is essentially trying to collect money from people htat don't have any.

Jon Zolsky, your Daytona Beach connection

Jon- Thanks for your comment. No, I did not know that. I suppose that is because you already spent the money when you have a credit card and you got some retail item from it? Anyways, I have never agreed with the the way we pay income tax. One of the reasons we had the revolutionary war was to rebel against the high taxes the British were imposing. Katerina

Amanda Hall--Realtor, Fort Worth Texas

Amanda- Thank you for commenting. We have been requesting from the lenders to NOT 1099 our sellers. Sometimes it works, sometimes it doesn't. But then they can prove insolvency through their accountant. But since it was obvious that they are insolvent why go through the exercise and the expense! Katerina

Ken Cook says "Yes You Can"

Since this is a Localism post for Wellington sellers of short sales and I know they read all the comments I will keep politics out of the story even thought they are the story! Thanks for your passion! Katerina

Katerina, this is really good news. I emailed the link to 2 of my sellers, that were reluctant to do a short sale because of the 1099 tax increase.

Lola Audu~Grand Rapids, Michigan Real Estate

Lola- Thank you for your comment. I never understood that contradiction either! It does not take a math genius to figure that one out. It also put sellers in higher tax brackets which was really a burden. Katerina

Roberta LaRocca - REALTOR® Las Vegas

Roberta- Especially in your area and our area! Now, go help those sellers to get this off their backs and move on with their lives! Merry Christmas! Katerina

Adam Waldman - Long Island, NY Real Estate

Adam- I totally agree with you. How do you tax a loss? How do you tax what does not exist? It was such a burden to have to then go spend more money that you do not have to hire an accountant to prove your insolvency. It was such a contradiction. But then again, isn't that most of what the government seems to be? Katerina

Missy Caulk Ann Arbor Real Estate

Missy- Good news, yes, we can use that! That is great, I am glad I could give you the link to send to them. Katerina

Katerina, Wonderful news and I do hope this helps many people out. It's terrific for you to share the information and people that may have been reluctant to contact someone will see you and Nestor know how to help them.

Carole Provenzale Owner, Feng Shui Long Island

Carole- Thank you! It is great that consumers can read our blog for positive news. Our local media did not post this online anywhere! Katerina

Great minds think alike - I saw the RTT Newsfeed yesterday, and new I had to report it on my local blog. Of course, what goes there goes on Localism!

I got the news feed yesterday.. this is good news on the 1099 deal alone...I have been just doing listings on the foreclosure homes with most so that we will be in position to be prepared with the short sale offers,,,PS the 1099 was due to the pass it down therory of accrual accounting principles. This was a way to clear the balance sheet, without reguard for the home owner...In most cases, the lenders were not passing it on anyway, thee were other methods

DEC

2007

Margaret Woda, Maryland REALTOR

Margaret- We knew we had to report it because today, not one of our papers printed this story. Instead it was about something Bush was going to veto, and how bad real estate is here again! It would be expecting too much to think they would print this important news! Katerina

Mike Norvell Sr., Mid-Florida Real Estate

Mike- Thanks for your comment and insight! We had some lenders here 1099 the sellers on short sales so this is good for them since it backdates to the beginning of the year! Katerina

Katerina, this news is good to know especially with the number of short sales that have been popping up lately. I have a short sale listing going on the market in another week or so.

Brian Block -- Northern Virginia & D.C. Real Estate

Brian- It is a good thing that in your area there are not a lot of short sales! They are very time consuming to do! Katerina

To help you with details on debt forgiveness - see my blog today at http://activerain.com/blogsview/315203/MORTGAGE-FORGIVENESS-ACT-2

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

got a sign for ya Kat

Richard Zaretsky, Esq.

Richard- Thank you for the tip. Katerina

Mike Norvell Sr., Mid-Florida Real Estate

Mike- Thanks! Great sign from image chef! I like their images! Merry Christmas! Katerina

DEC

2007

Nestor & Katerina,

I am late with the comment, but you are right. The logic behind taxing you on a portion that you settled and will not pay back to the Credit Card company is simple. If you borrowed $10K and settled to return only $5K, you retain $5,000, you have to pay tax, as this is considered income by IRS.

DEC

2007

Jon Zolsky, your Daytona Beach connection

Jon- I can see that point. You still enjoyed the benefit of whatever you used the card for. Your loss in revenue on a mortgage is a different apple altogether. Thank you for explaining. Katerina

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