Clarks Summit Pa Homes For Sale - Short Sale Facts

Reblogger Bonnie Vaughan
Real Estate Agent

Thousands of home owners have used a process called a Short Sale to sell their homes for less than they owe.  If you have contemplated selling your home and taking advantage of the debt relief program don't hesitate too long.

Read this timely article by Real Estate professional Rocky Dole.

A Realtor experienced in Short Sales can help you through the process.  It is a solution for homeowners who owe more than their home is worth.

Original content by Rocky Dole SA639670000

Short Sale Your Home Before Its Too Late/Mortgage Forgiveness Debt Relief Act!!!

Are you like many people who are “under water” in their home?  Are you considering a short sale?  Then you need to know some important information regarding changes that are coming in regards to your income and taxes according to the Mortgage Forgiveness and Debt Relief Act.  The tax breaks are currently set to expire at the end of this year.  This means that after this year if your debt is cancelled or forgiven on your home such as in the case of a short sale or repossession then you will be taxed on the difference between what the home sells for and what you owe on the property.  For example if you owe $200,000 and the property sells for $100,000 then you will be taxed on the other $100,000 as income.

The Mortgage Forgiveness Debt Relief Act applies to debt that was cancelled or forgiven in calendar years 2007 to 2012.  If you borrowed money from a commercial lender and the debt is later cancelled or forgiven then you may have to include this cancelled or forgiven debt in your income.  When you borrowed the money you did not have to include it as income because of your obligation to repay the money.  However, when the money is cancelled or forgiven then you do not have any further obligation to repay the funds.  Therefore, you end up with a net gain.

The Mortgage Forgiveness Debt Relief Act which was enacted on December 20, 2007 permitted an exclusion of this net gain from you income.  This legislation applied to debt that was used to buy, build, or improve your principal residence or refinance debt incurred for those purposes.  However, this legislation is set to expire at the end of this calendar year.  What this means is that if you have your debt was cancelled or forgiven after this year such as the case in a short sale or foreclosure then you will be taxed on this cancelled or forgiven debt as income.  The good news is that there is still time to act.  For more information or to short sale your home contact Rocky at (520) 413-1520 today!

Short Sale Your Home Before Its Too Late/Mortgage Forgiveness Debt Relief Act!!!

 

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Rainer
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Rocky Dole
Revelation Real Estate - Maricopa, AZ

Thank you for helping to get the message out.

Mar 09, 2012 09:44 AM #1
Rainmaker
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Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Rocky thank you for allowing me to re-blog the article.  I appreciate it.

Mar 09, 2012 10:00 AM #2
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Rainmaker
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Bonnie Vaughan

CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
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