Congress Extends Mortgage Forgiveness Debt Relief Act!
On January 1, 2013, as part of the so-called fiscal cliff negotiations, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act. This extension of this act, which has saved homeowners more than $1 billion dollars in taxes, is great news for struggling homeowners nationwide.
The extension is now only awaiting President Obama’s signature.
The Mortgage Forgiveness Debt Relief Act was originally passed in 2007 to aid the millions of homeowners who suddenly found themselves in danger of losing their homes to foreclosure following the housing market crash.
Under the Mortgage Forgiveness Debt Relief Act, debt forgiven in a short sale, foreclosure, or loan modification, is exempt from federal taxes on primary residences. For homeowners facing foreclosure, this exemption saves them from paying thousands, or even tens of thousands, in taxes on top of losing their homes.
Now for another year, homeowners can take advantage of this exemption and avoid foreclosure without the fear of an impossible tax liability.
And with banks recognizing the significance of short sales as an effective loss mitigation tool, they’re ramping up for business. Short sales will be the key loss mitigation tool used by mortgage servicers in 2013.
As a Certified Distressed Property Expert (CDPE) agent, I am specially trained to help homeowners escape the threat of foreclosure. If you or someone you know is facing foreclosure, contact me for a private consultation. I can help find a solution.
If it's time to talk to a Realtor® who specializes in Short Sales 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 firstname.lastname@example.org. 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.