April 30th, 2012 9:40 AM by Christopher Terry
According to Lender Processing Services there are over 2,000,000 properties in foreclosure inventory. These are properties that have been foreclosed and not sold, either currently on the market waiting for a buyer or waiting to be put on the market. In addition, it was reported by CoreLogic that at the end of the 4th quarter 2011 there were 11.1 million homeowners underwater.
The mortgage debt relief act of 2007, which gives qualified homeowners a break from paying taxes on forgiven debt, whether it be from a short sale, a foreclosure, or a loan modification, is set to expire at the end of this year. So if you are considering a short sale, a loan modification or are starring down the barrel of a foreclosure your window of opportunity to benefit from this act is expiring soon!
Consider this, if your forgiven debt is $100,000, depending on your tax bracket you could be looking at $15,000 to $35,000 in taxes owed on that debt!
The good news, President Obama's budget does have a provision to extend the act through 2014, but Congress may not decide that it is as crucial as extending tax breaks that have already expired at the end of last year.
For FREE online help visit http://www.teamezreo.com. And for details regarding the 2007 mortgage debt relief act visit: http://www.irs.gov/individuals/article/0,,id=179414,00.html
Christopher Terry, broker/owner of EZ Home Search Real Estate, has been helping home buyers and sellings in the Greater Fall River area and South Coast MA and RI for more than 20 years. Visit chris online at www.ezhomesearch.net or www.christerry.com.