Mortgage Debt Relief Act Extended Until January 1st 2014
One of the best things about the last minute Fiscal Cliff deal that was signed recently is that the Mortgage Debt Relief Act of 2007 was extended for another year, giving tens of thousands of homeowners, another year to choose Short Sale or Foreclosure, for getting relief from their underwater or distressed home.
How Much Longer?
Orange County homeowners who are living in distressed homes have until January 1st 2014 to choose Short Sale, Foreclosure or Loan Modification to get out from their underwater homes or restructure their mortgages and stay in their homes.
The great thing about the Mortgage Debt Relief Act is that any homeowner who obtains relief from their underwater home over the next year will not have to pay federal income taxes on the remaining balance of their Mortgages.
Instead of having to file a 1099 and pay taxes on their Mortgages remaining balance, the homeowner can walk away and move on with their lives.
Hope For The Future
The Mortgage Debt Relief Act does offer distressed homeowners hope for the future and the promise of being able to move forward with their lives without having to pay income taxes on the remaining balance of their homes Mortgage.
Before an underwater homeowner chooses loan modification, Foreclosure or Short Sale they should consult with their attorney and make sure that they have all of their financial documents ready before choosing the option that is best for them.
Short Sale Or Foreclosure?
Over the last year there’s been a long standing debate among top Orange County Realtors if Short Sale or Foreclosure is the better option; for homeowners who want to get obtain relief from their underwater homes this year the answer is clear; it’s Short Sale.
The average Short Sale can be approved in as little as 90 days or less, depending on the lender. For those Orange County homeowners who want to obtain relief from their distressed mortgage this year the time to act is now.
Contact Fred Sed & Associates today at (949) 272-01245 to talk with one experienced team members of Orange County Real Estate agents and get the Short Sale process started today.