More Homeowners Will Have Peace Of Mind With Extension Of Mortgage Debt Relief Act
Thanks to the Mortgage Debt Relief Extension, two things will happen in Orange County: 1. Sales of distressed homes will continue as they did in 2012 and 2. More distressed homes for sale on the real estate market will mean a badly needed increase in Orange County home inventory, which will be great for buyers who are hungry to buy their first homes and continue to fuel the growth of the overall real estate market.
Peace Of Mind
With extension of the Mortgage Forgiveness Debt Relief Act of 2007, homeowners in Orange County and across the United States can have confidence that if they choose to Short Sell their distressed homes, they won’t face the prospect of having to pay taxes on any difference or short fall that remains after the short sale is approved.
If a $3000,000 home sells via short sale for $250,000, the homeowner would have had to pay taxes on the $50,000 that remained had MDRA not been extended on January 1st 2013. For an already distressed homeowner, this would be a substantial hit to the homeowner, as well as the economy due to the lost revenue these taxes would limit from going back into the local Orange County economy.
How Long Will The Extension Last?
The latest extension of the Mortgage Debt Relief Act is only good for one year and will last up to January 1st 2014.
Distressed homeowners across the United States should hire a Short Sale specialist and take advantage of the Short Sale option now because, short sales take time, and it’s better for any distressed homeowner to short sell their home now than to wait until December 2013 and face the prospect of not being able to enjoy the benefits of Short Sale should MDRA not get extended again.
To learn more about what it takes to short sell in Orange County or to view the latest short sales on the market, contact the experienced team of top Orange County realtors at Fred Sed & Associates by calling (949) 272-0125 for a free consultation.