“Depending upon the tax bracket the homeowner is in, they could owe $15,000 or more in additional taxes, which will be devastating to these homeowners,” Kris Lindahl adds.
Blaine, MN. (PRWEB) August 12, 2012
Kris Lindahl understands the urgency of having short sales completed before the end of 2012, because the 2007 Mortgage Debt Relief Act is set to expire at the end of 2012. Kris Lindahl explains, “If the 2007 Mortgage Debt Relief Act does not get extended, many homeowners stand to owe huge amounts of taxes on the short sale of their homes.”
“The way the 2007 Mortgage Debt Relief Act works is, let’s say a homeowner owes $300,000 on the balance of their mortgage, and the bank agrees to short sale the home for $200,000, the homeowner will not owe the additional $100,000 to the bank because the bank forgives the debt,” Kris Lindahl explains. Kris, a top short sale agent, goes on to say, “The problem being, the $100,000 debt that is forgiven by the bank, if the 2007 Mortgage Debt Relief Act is not extended the homeowner will be responsible for paying taxes on that $100,000.”
The 2007 Mortgage Debt Relief Act allowed homeowners to not report the $100,000 as income, which taxes would be due on. “If an extension does not go through, homeowners will have to report any amounts, like the $100,000 used in the example as income, and will owe taxes upon that amount,” Kris Lindahl reports. “Depending upon the tax bracket the homeowner is in, they could owe $15,000 or more in additional taxes, which will be devastating to these homeowners,” Kris Lindahl adds.
“Most homeowners are selling their home in a short sale because they are underwater on the mortgage, or in other words they owe more on the mortgage than the home is valued at,” Kris Lindahl explains. “Many of these homeowners have financial difficulties because of the current struggling economy in America, and cannot pay these additional taxes,” adds Kris Lindahl.
“I am trying to help as many people as possible get their short sales approved before the end of the year, because the chances of the 2007 Mortgage Debt Relief Act getting extended this late in an election year are not very high,” Kris Lindahl remarks. “There have already been 3 attempts to get the 2007 Mortgage Debt Relief Act extended, but they were all turned down, so I am trying to help people get their short sales completed now.”
Kris Lindahl is a preferred Short Sale Agent for Wells Fargo, and has a very high Short Sale Loan approval rate. Contact Kris Lindahl, the top Minnesota and Wisconsin Short Sale Agent for Edina Realty, and his Short Sale team at 763-447-3925 for help getting Short Sales approved. Minnesota residents can visit MNShortSaleCalculator.com and Wisconsin residents can visit WisconsinShortSaleCalculator.com to see if their home qualifies for a Short Sale.