It’s hard to believe that we are coming closer to the end of another year and as December 31st approaches, distressed and underwater homeowners in Orange County, and across California, have to deal with the reality that the Mortgage Forgiveness Debt Relief Act will once again expire by the end of this year, unless it’s extended once again through December 31st
What Is The Mortgage Forgiveness Debt Relief Act?
The Mortgage Debt Relief Act has been in existence since 2007, is part of the American Taxpayer Relief Act, and has helped thousands of Real Estate owners across the United States over the last six years avoid the possibility of paying income tax on the shortfall or principal from their mortgage if they chose short sale over foreclosure.
Thanks to the Mortgage Debt Relief Act and short sale, many homeowners who chose the short sale option were able to get a “fresh start” financially and ultimately purchase homes in Orange County, or anywhere else in the United States.
Time to Take Action Now
If you’re an underwater homeowner in Orange County, and you’ve been considering short sale as an option to get out from your underwater home, now is the time to short sell your home since there is no guarantee that the Mortgage Debt Relief Act will be extended through 2014.
A typical short sale can take up to 60 days or longer, depending upon your lender, so it’s important to start the short sales process now. If you want to have your home sold before December 31st take advantage of the Mortgage Debt Relief Act and all of the benefits that come from short selling your home before this year is over.
For more information on short sales, or for relocation assistance, contact Fred Sed & Associates today by calling us at (949) 272-0125.