For homeowners who are avoiding Santa Monica Short Sales due to the potential tax consequences there is good news in the way of a federally sponsored incentive program. The Mortgage Debt Relief Forgiveness Act has been in place for a few years and has already helped hundreds of homeowners avoid a hefty tax bill while also avoiding foreclosure. At Toni Patillo and Associates we have experience working with great program and discuss the details with homeowners that may benefit.
When a homeowner complets a Santa Monica Short Sale there is likely to be a large amount of debt forgiven. This amount of debt forgiven is the difference between the selling price of your home and the balance of your mortgage. Because this money was initially borrowed from your bank and never repaid it will be considered income by the IRS and require a w-2 to be issued. For homeowners that bought their home in the last five to ten years this amount of debt forgiven will likely be in the tens, if not hundreds, of thousands of dollars. Often times homeowners in need of a Santa Monica Short Sale are struggling to cover their monthly expenses and simply don’t have the money to pay. Thankfully this program can help homeowners avoid foreclosure in the long term while also keeping your hard earned money in your pocket come tax day. It is important to note that this federal program is set to expire at the end of 2013 so it is important to act fast. On average Santa Monica Short Sales take between four to six weeks to complete meaning time is running out.
At Toni Patillo and Associates we can get your Santa Monica Short Sale file up and running quickly in order to get a fast approval from your lender. To lean more about this great program, and see if you qualify, reach out to your trusted short sale agent today.