Considering a Short Sale? Mortgage Forgiveness Debt Relief Act Set to Expire December 31, 2012
Let’s say you bought your house when the market was high and then faced a hardship such as, lost your job, got divorced etc. In order to avoid foreclosure, you may be considering negotiating a short sale for a portion of the original loan. Thanks to a 2007 law, you currently don't have to pay taxes on the debt your bank forgives as part of the short sale agreement.
But this very law, considered to be one of the most helpful laws for underwater home owners, is set to expire at the end of this year.
The law is called the Mortgage Forgiveness Debt Relief Act. It relieves home owners who get part of their mortgage loan forgiven, often through a short sale, from having to pay tax on the forgiven portion of the loan.
So how does this affect you? The Mortgage Forgiveness Debt Relief Act of 2007 ensures that homeowners who restructure their mortgages or short-sell their homes don't have to pay taxes for reducing part of their debt. Without this law, any cancelled debt would count as taxable income. This important tax break expires at the end of 2012 and, because of opposition from conservative members of Congress, might not be renewed.
Short Sales can take time and time is running out. What you don’t want to do is wait until the last minute. You have options! If you are facing unaffordable mortgage payments, and are considering a short sale, please contact me today for a confidential consultation and help navigating the option that best suits your situation. Time is almost up. Don’t wait until the last minute to create a plan of action. Call now for a No Obligation, NO COST Consultation.
Note: Each bank is Different, and Clear Communication is necessary regarding your specific circumstances to determine an outcome.
You may wish to contact an Attorney & or Tax Professional.
**If you are listed with another agent this is not a solicitation for your business.
If it's time to talk to a Realtor® who knows Murrieta, Temecula and Menifee, CA Real Estate or if you have specific questions relating to homes and Real Estate in Murrieta, Temecula and Menifee, CA, or in any part of the Temecula Valley, give me a call at 951.704.6370, or email me at kristiharden1@gmail.com. To learn more about Murrieta, Temecula and Menifee, CA, I invite you to visit my website and become a Market Insider today! For more information on the short sale process and how I can help, visit www.StopForeclosureInMenifee.com.
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