ROSEVILLE SHORT SALE UPDATE FOR MORTGAGE RELIEF- Late last night Jan 1st 2013, Congress reached a settlement in the “fiscal cliff” negotiations. As a result, the Mortgage Forgiveness Debt Relief Act has been extended for another year.
Short sales, loan modification (including any principal reduction) or foreclosures will be exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a successful closing. Anyone thinking that they want to short sale in 2014 should call their REALTORS® now to make sure you get it sold this year. Also future short sale clients are encouraged to consult with their own tax advisers about their tax situation.
The settlement also will allow capital gains rates to rise from 15 percent to 20 percent for high-income earners. Capital gains rates on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 for married couples. This is also good news for those who still need to sell and have equity!
If anyone has questions concerned about doing a short sale in the Roseville and Placerville and Sacramento County areas, feel free to call me and I will see what we can do for you. I will continue to keep you updated with more detailed analysis as it becomes available.
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