Time May be Running Out on the Mortgage Debt Relief Forgiveness Act
October 24, 2012
There may still be time to benefit from the Mortgage Debt Relief Forgiveness Act. This Act is set to expire on December 31, 2012. Many real estate experts think the federal government will extend its provisions but you can not be certain. You may remember that prior to Congress passing this Act, folks who sold there homes for less that was owed were subject to paying income tax on the amount of debt that was forgiven by the lenders. The Act forgave the debt and taxes on it were waived.
While "short sales" have a reputation of taking months to complete, it may still be possible to list your home and close a sale under this deadline. So if you are one of those underwater homeowners and no loan modification have been approved, putting your home on the market right now may be beneficial to you.
The number of homes presently listed for sale is very low. There are more buyers out looking for homes than we have seen in some time. Since in a short sale you, as the seller, will be receiving no monies from the sale, make your listing price as competitive as possible. Ultimately the bank will determine the selling price, but attracting buyers to make offers is the first necessary step in the short sale.
The Mortgage Debt Forgiveness Act is a great benefit to the underwater homeowner. Don't forget about how it was when you had income tax liability on the debt forgiveness.
There may still be time to benefit from the Mortgage Debt Relief Forgiveness Act. This Act is set to expire on December 31, 2012. Many real estate experts think the federal government will extend its provisions but you can not be certain. You may remember that prior to Congress passing this Act, folks who sold there homes for less that was owed were subject to paying income tax on the amount of debt that was forgiven by the lenders. The Act forgave the debt and taxes on it were waived.
While "short sales" have a reputation of taking months to complete, it may still be possible to list your home and close a sale under this deadline. So if you are one of those underwater homeowners and no loan modification have been approved, putting your home on the market right now may be beneficial to you.
The number of homes presently listed for sale is very low. There are more buyers out looking for homes than we have seen in some time. Since in a short sale you, as the seller, will be receiving no monies from the sale, make your listing price as competitive as possible. Ultimately the bank will determine the selling price, but attracting buyers to make offers is the first necessary step in the short sale.
The Mortgage Debt Forgiveness Act is a great benefit to the underwater homeowner. Don't forget about how it was when you had income tax liability on the debt forgiveness.
posted by shirley harry at 7:37 AM
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