For homeowners who are avoiding Venice Short Sales due to the potential tax consequences there are programs available to help. Thanks to the Mortgage Debt Relief Forgiveness Act homeowners who qualify can complete their Venice Short Sale while also avoiding a severe tax bill come April. At Toni Patillo and Associates we have been helping homeowners avoid foreclosure for years and can discuss with you the benefits of this program.
Enacted by President Bush this Act of Congress has already been extended twice due to the benefit it provides. When a homeowner completes a Venice Short Sale the difference between the selling price of the home and the balance of the mortgage is forgiven. Because this money was initially loaned to you by your bank but never repaid it is deemed to be income by the IRS. This requires that a miscellaneous income w-2 be issued to the homeowner in order to be reported come tax season. For homeowners who bought their home in the last five to ten years, essentially the height of the market, the amount of debt forgiven can be tens if not hundreds of thousands of dollars. Many of the homeowners who need to complete Venice Short Sales are in this position because of an unexpected life event. Those who are struggling to make their monthly payment will likely not be in a position to also come up with this additional money on tax day. The long term effects of a foreclosure can be very damaging and homeowners choosing this route over Venice Short Sales now have options. However, the Mortgage Debt Relief Forgiveness Act is set to expire at the end of 2013 so it is important for homeowners to act fast.
On average Venice Short Sales take four to six weeks to get approved so consider your options today before it is too late. At Toni Patillo and Associates we can handle the entire Venice Short Sale process but first we need to hear from you. This incredible program has already helped thousands and can save you in more ways than one.