Over the last five years the Mortgage Forgiveness Debt Relief Act has helped hundreds of thousands of distressed and underwater homeowners in California, and across the United States, get out from their underwater and distressed homes, and California has also had its own version of debt forgiveness for homeowners with SB 30 and what both bills have in common is that they are set to expire by January 1st
Countdown for Homeowners in California
Since California’s own “Cancellation of Indebtedness: Mortgage Debt Forgiveness (SB 30) was extended on June 20, 2013, retroactive to January 1st foreclosure or loan modification to get out from the weight of their underwater or distressed homes.
What’s awesome about these Federal and State bills is that they have protected homeowners in California from having to pay income tax on any shortfall or debt that remains after their California short sale or foreclosure has been approved but this could change by January 1st extended by the State and Federal Government.
Thinking About Short Sale?
Even though home values have risen across California in the last year there are still many homeowners who are so far underwater with their mortgages that it could take them years until they have enough equity in their homes so they can sell them without taking a loss.
If you have an underwater mortgage and have been thinking about short sale, now is the right time to take action because, a short sale can take 30 days or longer, depending on your lender. It’s important to start the short sale process now so you can have your short sale completed before the end of this year and also take advantage of 2013 tax deductions.
To learn more about how easy it is to get your short sale started contact Fred Sed & Associates today by calling us at (949) 272-0125.