When December arrives the average Orange County resident is able to relax, take some time off for vacation and start planning for the New Year to come. For those distressed or underwater homeowners in the area though, the end of 2012 has a greater importance.
In the first part of this four part series we’re going to cover the importance of short selling before 12/31/12 and why it’s important for homeowners to act now.
Why Not Wait Until January 2013 To Short Sell?
Thanks to the Mortgage Debt Relief Act of 2007 (MDRA), homeowners across the country, who have been able to short sell their homes have been able to walk away without worrying about the possibility of paying income tax on the forgiven debt.
Besides being a great bill that has helped short sellers, the MDRA has also helped homeowners who have gone into foreclosure and had the debt from their foreclosures forgiven. The Mortgage Debt Relief Act has also helped homeowners who had debt reduced on their homes due to mortgage restructuring as well.
A Real Sense Of Urgency
If a homeowner doesn’t short sell, choose foreclosure or have their mortgage restructured before 12/31/12 they could face the stress of having to pay taxes on that forgiven debt and even though there’s been talk of President Obama and Congress possibly extending MDRA to avoid going off the Fiscal Cliff. There’s no guarantee that they will extend the Mortgage Debt Relief Act though. That’s why it’s important for Orange County homeowners who have underwater or distressed mortgages to act quickly before the end of December arrives.
To learn more about the importance of the Mortgage Debt Relief Act of 2007 and why you should move forward with a short sale before 12/31/12, contact the us at Fred Sed & Associates today by calling (949) 272-0125 to see how we can put our highly qualified Short Sale negotiators to work for you.