For homeowners that may be avoiding a short sale due to the potential tax consequences your Venice Short Sale Agent has good news. Thanks to the Mortgage Debt Relief Forgiveness Act you may be able to avoid foreclosure and that hefty tax bill tbats been worrying you. At Toni Patillo and Associates we have years of experience with this program and can help you determine if you qualifed.
Passed by Congress when President G.W. Bush was in office this great program has already helped thouands of homeowners avoid that hefty bill comes April tax day. When a homeowner completes a short sale the difference between the selling price of the home and the balance on the mortgage is forgiven. This is a big part of the short sale negotiation process that your Venice Short Sale Agent handles and may sometimes require a contribution from the homeowner. Because this money was originally loaned to the homeowner and never repaid it is considered to be income by the IRS. Because of this a miscellaneous income w-2 will be have to be issed for the following tax year. If you are like many homeowners who bought your home in the last five to ten years this amount of debt forgiven could be significant. In many cases in Southern California this number has reach up in to the hundreds of thousands of dollars. Many homeowners in need of a Venice Short Sale Agent simply do not have the resources available to pick up additional tax expense. Thankfully the Mortgage Debt Relief Forgiveness Act is here to help. It is important to note that this program is set to expire at the end of 2013 so it is important to act fast. On average your Venice Short Sale Agent can get your file approved in four to six weeks.
If you are interested in learning more about this great program you may want to contact your Venice Short Sale Agent as soon as possible. This incredible program has already helped thousands of homeowners and there may still be time for you to cash in as well.