For homeowners that are concerned about tax consequences of selling their distressed property your Santa Monica Short Sale Agent has great news for you. Thanks to the Mortgage Debt Relief Forgiveness Act homeowners can complete a short sale while not having to worry about a hefty tax bill come next April. At Toni Patillo and Associates we have been helping homeowners in this situation for years and can help you learn if you qualify.
When a homeowner completes a short sale there is often a large amount of debt forgiven. Since this money was initially borrowed in order to purchase the home but never repaid it is considered income by the IRS. This requires a w-2 for miscellaneous income to be sent out and report on the following years tax form. Most homeowners considering a santa monica short sale simply do not have the extra funds laying around to cover this expense. And for homeowners who bought their home in the last five to ten years the amount of debt forgiven could be in the tens to hundreds of thousands. Thankfully the Mortgage Debt Relief Forgiveness Act will allow you to waive these additional taxes in order to avoid foreclosure. When selecting your Santa Monica Short Sale Agent make sure they have experience with programs like these to ensure you are receiving the best deal available. It is important to note that this program is set to expire at the end of 2013. On average your Santa Monica Short Sale Agent can get your file approved in four to six weeks. This means that time may not be on your side unless you act fast.
Contact your Santa Monica Short Sale Agent as soon as possible to learn about this and other great short sale incentive programs. These opportunities are not available forever but are a great chance to get back on your feet and find your next home.