Distressed homeowners can continue to enjoy short sale tax relief in 2013 thanks to the extension of the Mortgage Debt Relief Act of 2007.
What exactly does Short Sale tax relief mean? Thanks to the Mortgage Debt Relief Act, a distressed homeowner will not have to pay any taxes on mortgage debt that’s left over after their short sale is approved.
With the extension of MDRA, which is part of the American Tax Payer Relief Act of 2012, a distressed homeowner in Orange County or anywhere else in the United States can short sell their home and not face the prospect of paying taxes if there is a remaining balance on their mortgage.
Even though this piece of legislation is going to help thousands of homeowners this year, the Mortgage Debt Relief Act is only extended until January 1st 2014. This means that a distressed or underwater homeowner should act now or face the problem of paying taxes on their mortgage balance should their short sale extend into 2014 and short sale tax relief is not extended again.
Home Inventory Set To Increase
Since this Short Sale tax relief was extended we can expect to see an increase in home inventory in the Orange County area and across the United States as a whole.
Most lenders are inclined to approve a Short Sales proceeding with a Foreclosures because, they are able to turn the property around as quickly and get a higher percentage of their money back (compared to foreclosure) since there are no legal costs associated with the occupant leaving the property.
What To Look For In A Short Sale Realtor
Planning on Short Selling your home in 2013? The first step is to find a qualified Short Sale Realtor.
Make sure that the Realtor you choose has a verifiable record of the Short Sales they’ve closed in the last year and plenty of customer referrals or recommendations to confirm that they are a short sale expert.
To speak with an experienced team of Short Sale Realtors, contact Fred Sed & Associates today at (949) 272-0125.