The Mortgage Forgiveness Debt Relief Act extends mortgage cancellation relief for home owners and sellers through disallowing taxes on the portion of their mortgage debt forgiven by their lender.
As short sales have represented a large sector in the housing market of late, the extension is seen by many as key to a continued recovering housing market. According to the U.S. Foreclosure & Short Sales Report™ complied by RealtyTrac, the last quarter of 2012, showed short sales as representing 19 percent of residential home sales in the United States. See the full report by clicking here.
According to RealtyTrac Vice President Daren Blomquist, the increase in short sales and distressed properties showed that “both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure.” Blomquist went on to explain that had the Mortgage Forgiveness Debt Relief Act expired, homeowners would have seen their income tax increase since the unpaid loan balance created by the short sale would have been considered taxable income for many home sellers.
With this recent extension, if you are a home owner interested in a short sale for your home, you now have until December 31, 2013 to benefit from the reduced taxes provided by Mortgage Forgiveness Debt Relief Act.
Whether Buying or Selling, you NEED an accurate VALUE for the HOME. Fill out this short form and receive a discrete, accurate opinion that will help you make an informed decision.
Real Estate conditions are LOCAL. Don't trust national forecasts. I update my easy to read graphs for each zip code, every few days. Find out how things are in the HONOLULU market!
Malia is a highly sought-after “FINE HOME SPECIALIST” for the island of Oahu. She is an expert in the Honolulu & Windward area. Her ability to successfully plan strategize, market and negotiate has resulted in many satisfied and happy clients. Malia enjoys getting to know her clients so that she may better understand their needs and desires for the short and long term.
Contact Us Today808-595-8478