Mortgage Debt Forgiveness and Its Impact on Californians Completing a Short Sale, According to ACL Real Estate and Property Management

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Congress finally reached a monumental deal with the Fiscal Cliff negotiations. Because the resolution was passed, the Mortgage Debt Forgiveness Act will be extended for another year laying the groundwork down an increase in short sales for east bay home owners.

This law makes 2013 one of the best years to complete a short sale or purchase a home via short sale and rent out

The newly extended law is due to expire December 31, 2013. This law makes 2013 one of the best years to complete a short sale or purchase a home via short sale and rent out.This law will continue to make eligible homeowners exempt from being taxed on the debt that was forgiven by the bank in a Short Sale or Loan Modification.

Pease Limitations, which were also part of the overall agreement, were completely repealed for most people. Pease Agreements allowed the reduction of value on items through line item reductions. The new restrictions now apply to those who make $250,000.00 as individuals and $300,000 as married couples.

The passing of the law now eases the impact a non-passed law would have had on the Mortgage Interest Deduction vs. an actual dollar deduction limit, percentage deduction limit, and the overall Mortgage Interest Deduction shall be claimed under the passed legislation.

ACL Real Estate and Property Management will continue to provide updates as they become available.

ACL Real Estate and Property Management is a full service Bay Area Brokerage that specializes in Selling and Managing Single Family, Multi Family units. The Service Areas Are Including but not limited to: East Bay Area, Alameda Counties, Contra Costa Counties, San Mateo Counties. Berkeley, Oakland, Hayward, San Leandro, Castro Valley, Fremont, Sunnyvale, San Mateo, and many more.

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ACL Real Estate and Property Management

CA DRE# 01893837
ACL Real Estate and Property Management
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