Will Mortgage Debt Relief Act Be Extended?
If the Act is Passed
If the Mortgage Debt Relief Act is extended, there may be good news on the horizon for homeowners who recently had a mortgage forgiven by a short sale or a loan modification or a foreclosure.
The Mortgage Debt Relief Act is included in a bill approved by the Senate Finance Committee. The latest extension expired as of December 31, 2013. Some homeowners were at risk of a tax burden for the amount forgiven. On Thursday, April 3, 2014, the Senate Finance Committee approved a two-year retroactive extension of the bill. If the bill is enacted, it will be good news for those distressed homeowners who may have otherwise received a tax bill they may not be able to afford to pay.
Mortgage Debt Relief is Only Part of the Bill
But here’s the problem. The bill on the table contains other concerns – not just The Mortgage Debt Relief Act. The full Senate and the House must approve the proposed bill before it becomes law. There may be hurdles and negotiation because of the other inclusions. It’s still good news and something the National Association of Realtors (NAR) has been pushing for.
Seeing movement on the extension of this bill is encouraging for those who were worried about listing their home as a short sale. And for those homeowners whose mortgages may have been relieved since the bill expired in 2013, there is hope that the bill will pass.
While some homeowners may have been waiting and hoping for the Mortgage Debt Relief Act extension, others have not had that option. Short sales continue because homeowners are still struggling. We meet with people who simply cannot pay their mortgage. Some are still underwater, some have lost their jobs or are unable to find work.
If you are in a financial crisis and cannot pay your mortgage, call Short Sale Facilitators of Casselberry, Florida. Steve and Alma Korshak are professionals with seven years of experience negotiating the terms of a short sale in the central Florida area. Attorneys, realtors and homeowners work with them to handle the complex details of negotiating a short sale.
Call Alma Korshak at 321-397-5505 to schedule an appointment to discuss the short sale of your home. Alma and the team at Short Sale Facilitators will meet with you to explain the process and discuss the options surrounding your individual situation.
Consult a Professional
Short Sale Facilitators always suggests you consult an attorney or a tax professional with any tax concerns you may have in of the short sale of your home. When you are ready, Short Sale Facilitators will be here to help negotiate the best outcome for you and your family. At Short Sale Facilitators, every client is a priority.