The real estate market is changing and at the end of the year, so might an important law for short sellers.
With the end of 2012 nearing and the new year right around the corner, it can be a time of reflection for many. At year's end we often review personal and professional experiences. Throughout 2012 in this blog, the Arizona and California real estate markets have been in a constant state of review. It has been interesting to follow the changes close to home and throughout the U.S.
The end of this year also signifies the possible end of The Mortgage Forgiveness Debt Relief Act. Since 2007, this law has given some house sellers tax relief on mortgage debt forgiven by lenders. However, this debt relief act is set to expire on December 31, 2012 unless Congress makes a move.
The Mortgage Forgiveness Debt Relief Act helped many at tax time.
With the decline in our economy more property owners chose the short sale process to avoid foreclosure. The Mortgage Forgiveness Debt Relief Act was intended to assist distressed borrowers, including short sellers. However, since additional criteria is considered, a short sale alone may not qualify you to receive this benefit. So, whether or not this law stays in effect won't necessarily make a difference to some Americans involved in a short sale.
Below is a link to a Union Tribune San Diego article discussing this related real estate and tax relief opportunities and issues.
Possible Expiration of The Mortgage ForgivenessDebt Relief Act
If you want to learn more detailed information about The Mortgage Forgiveness Debt Relief Act, the link below will take you to the IRS website with more about the law.
Find out more about The Mortgage Forgiveness Debt Relief Act.
