Dayton, MN. (PRWEB) September 14, 2012
“The 2007 Mortgage Debt Relief Act is set to expire at the end of 2012, so many people are investigating the short sale process, and trying to get their home through the process before the act expires,” Kris Lindahl says, and adds “in other words with 2007 Mortgage Debt Relief Act allows an exemption so taxes will not be owed on the deficit.”
Kris Lindahl explains the “2007 Mortgage Debt Relief Act” forgives the debtor the amount between what is owed on the mortgage, and the amount collected from the short sale of the home. For example,” the top Dayton MN. short sale agent, Kris Lindahl adds, “if the mortgage is $400,000, the home short sale amount collected by the bank is $300,000, and the bank waives the difference of $100,000 that was not collected, that $100,000 is considered taxable income for the homeowner, which will greatly increase the amount of taxes they owe. The 2007 Mortgage Debt Relief Act provides an exemption for the $100,000 as taxable income for the homeowner.”
“If they do not extend the 2007 Mortgage Debt Relief Act,” Kris Lindahl explains, “the losses for homeowners will be substantial. In some cases, this will add a couple $100,000 in extra income for homeowners to report on their taxes.” Kris Lindahl feels it will get extended, but does not know if it will happen in an election year. The Dayton MN short sale agent, Kris Lindahl says, “nothing is for certain, as to whether it will get extended this year, but if you are a homeowner this deadline may affect whether you should short sale your home now or not.”
The hot topic right now is whether congress will approve and extend the 2007 Mortgage Debt Relief Act to 2014, or 2015 before the end of the year. Kris Lindahl says, “it will be interesting to see what happens, because there have already been a few bills that have been turned them down this year which included an extension for the 2007 Mortgage Debt Relief Act.”
One attempt was presented by Democratic Senator Debbie Stabenow of Michigan who proposed to extend the bill through 2013. Another attempt was made with a house bill sponsored by Republican Tom Reed of New York, who also wanted to extend it for 1 year. The third attempt was by Democratic Representative Charles Rangel of New York proposed a 2 year extension.
Call the top Dayton Short Sale Agent Kris Lindahl, at 763-447-3925, or visit the MNShortSaleCalculator.com website for more short sale information. Download a copy of the “Homeowners Guide To Short Sales” at the HomeownersGuideToShortSales.com website. Wisconsin homeowners looking for Wisconsin short sale information can visit the WisconsinShortSaleCalculator.com website.