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Northeast OH Short Sales: So How Does The Mortgage Forgiveness Debt Relief Act Help You?

Northeast OH – In our last blog post we explained that the Mortgage Forgiveness Debt Relief Act does not automatically release you from your mortgage debt after a short sale.

So, what does this law cover? What does it do? I’ll answer that question today.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Unfortunately, the law does not automatically release you from your upside down mortgage debt after a short sale. What it does do is give certain homeowners relief from taxes after a short sale.

Let’s look at the tax liability for a homeowner who short sold their home or lost it to foreclosure. Before this law was enacted, they would be taxed for any debt that was forgiven.

Let’s say that someone owed $400,000 on their home and sold it as a short sale for $300,000. According to Uncle Sam, if the lender forgave $100,000 in debt, then it was like they received $100,000 in free money.

Uncle Sam considered that forgiven debt as income. He wants that person to pay taxes on the income. Imagine the shock of receiving a big tax bill after you lost your home to foreclosure!

The Mortgage Forgiveness Debt Relief Act of 2007 changed all that. Someone can now short sale their home and be relieved from owing income taxes on up to $2 million in forgiven mortgage debt on their primary residence.

The law expires at the end of 2012. If you are thinking about short selling your home, then you need to get started right away. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at iandymorris@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (440) 348-5500

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Northeast OH loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Andy Morris.

Andy is a Real Estate Broker at Realty Trust Services.

Phone: (440) 348-5500. iandymorris@gmail.com.

View My homes for sale at www.rtserve.com.

Andy Morris specializes in loan modification assistance and short sales in Northeast OH. Northeast OH Modification Help, Northeast OH Short Sales, Northeast OH Short Sale Realtor, Northeast OH Short Sales. Northeast OH Realtor, Northeast OH Stop Foreclosure, Northeast OH Foreclosure Prevention, Prevent Foreclosure Northeast OH, Northeast OH Foreclosure Defense, Northeast OH behind in Payments.

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