So much talk about the fiscal cliff. It is unfortunate that the media and politics try to make it so complicated that most have no idea how the cliff may or may not effect them personally. As a Real Estate professional and a concerned citizen I followed the talk very closely for many reasons, specifically as a Real Estate professional, I was relieved that the vote included the extension of the Mortgage Debt Forgiveness Act.
The Mortgage Debt Forgiveness Act was due to expire, along with many other things, (but I won't go into those topics, those will be saved for several other blog topics), at the end of 2012. I am afraid and I believe many would have to agree that the cancellation of this Act would have put the housing recovery into a tail spin. For homeowners that have unfortunately found themselves in a short sale or loan modification situation find relief by utilizing the Mortgage Debt Forgiveness Act which provides 'forgiveness' of mortgage debt from being counted as taxable income by the Internal Revenue Service. I am sure I am not alone when I say it is a wonderful thing when you are able to owe less to the Internal Revenue Service by taking the short sale pathway and having the loss 'forgiven.' After all, many have already lost so much that this little ray of sunshine, looking at the glass as half full, rather than half empty; is a much needed break.
In some housing markets, short sales consist of almost 50% of the market. The Mortgage Debt Forgiveness Act is providing a lot of homeowners much needed relief. For more information regarding the extension and the details of the Act visit the following link to the Internal Revenue Service website. The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Cancellation
If you or someone you know has real estate needs, selling or buying, please do not hesitate to visit my website, http://www.buysaleva.com/, or call me directly at 703.596.2035.
Stephanie Hardman, Agent/Consultant
Keller Williams Capital Properties