Charlottesville Short Sales:
Mortgage Forgiveness Debt Relief Act Extended
The Mortgage Forgiveness Debt Relief Act has been extended another year unil January 1, 2014. For those unfamiliar with the Mortgage Forgiveness Debt Relief Act of 2007, it allows certain taxpayers to exclude income from the discharge of debt on their primary residence. This includes debt that has been reduced through the restructuring of a mortgage as well as mortgage debt forgiven in connection with a foreclosure, short sale, or deed-in-lieu of foreclosure. Without the Debt Relief Act, homeowners who sold their homes as short sales would be expected to pay taxes on the shortfall.
This is great news for Charlottesville homeowners needing to do a short sale! Homeowners who are experiencing a financial hardship and are underwater on their mortgage will still be able to take advantage of the benefits of the Debt Relief Act through January 1, 2014. FYI, the Mortgage Debt Relief Act does not apply to all homeowners. It is always highly recommended that a short sale seller consult with a real estate attorney and a certified public accountant prior to pursuing a short sale.
More information on the Mortgage Forgiveness Debt Relief Act can be found here:
Do you need to sell your home as a short sale in Charlottesville, Albemarle, Greene, Fluvanna or Louisa? Contact us for a FREE, no obligation, confidential consultation to evaluate your options. Don’t wait, get the help you need before it’s too late!
Copyright © 2013 by Allegra Williams
Charlottesville Short Sales: Mortgage Forgiveness Debt Relief Act Extended