If you can not pay your mortgage you might want to do something about it sooner rather than later. Here's why:
1. The Mortgage Debt Relief Act of 2007 is set to expire at the end of 2012
2. This act says that if you sell your primary residence as a short sale or it is foreclosed then no federal tax is owned on the debt foregiveness, the difference between what you owe and what the bank was paid back after the short sale or foreclosure.
3. In 2013, unless the act is extended there will be taxes owned on homes that are foreclosed or sold as short sales.
4. Do you really think the congress is going to pass anything like an extension of this tax relief during the election season?
So, if you can not pay your mortgage DO SOMETHING NOW. Don't be stuck with losing your home and then still owing taxes on it.
If you have any questions about short sales in San Mateo or Santa Clara Counties, please feel free to contact me.
Keller Williams Realty