They Passed It!

 

Great News for Homeowners Underwater!

 

They Passed It!

 

As I was observing the negotiations for the Fiscal Cliff between The House, Senate and the White House last night. .

I was particularly interested in the Mortgage Debt Relief Act of 2007 that allows taxpayers to exclude income from the discharge of debt on their principal residence. 

This is what happens to someone doing a short sale. . .

 

Essentially any monies forgiven during the process of a short sale by a lender. .

It is considered an income for the seller, 

The IRS considers this A TAXABLE INCOME!

 

The reason for this Mortgage Debt Relief Act is for the debt reduction  through mortgage restructuring for all homeowners that maybe considering doing a short sale.

 

This provision before,  applied to debt forgiven in calendar years 2007 through 2012.

 

This has been extended now until January 1st 2014

 

Short Seller are now exempt to pay any taxes under certain provisions

 

If you are considering a short sale, this is good news for you, 

 

For more information about the ins and outs of a short sale, 

 

Please visit here