If a Minnesota homeowner has a mortgage of $350,000, and their home ends up selling with a short sale process where the bank gets $200,000, the homeowner will have to pay taxes on the $150,000 difference,” Kris Lindahl explains.
Blaine, MN. (PRWEB) August 17, 2012
“The 2007 Mortgage Debt Relief Act is set to expire at the end of 2012,” says the #1 Minnesota Short Sale Agent, Kris Lindahl. “This is creating turmoil for homeowners, because if there is no extension on the 2007 Mortgage Debt Relief Act homeowners will be responsible for paying taxes on the difference between what the bank collects on their home from the short sale and the amount that was owed on their mortgage,” Kris Lindahl explains.
“In other words, if a Minnesota homeowner has a mortgage of $350,000, and their home ends up selling with a short sale process where the bank gets $200,000, the homeowner will have to pay taxes on the $150,000 difference,” Kris Lindahl remarks. “There are many homeowners that will not be able to pay these taxes, because they are already in financial trouble,” Kris Lindahl says.
“I work with all the financial institutions getting short sale loans pushed through the process as fast as I can,” Kris Lindahl explains. “I have assembled a team of very experienced agents to help with this process, because I understand the position that many of these homeowners will be in if they do not get their home through the short sale process before the end of the year if there is no extension,” Kris Lindahl replies.
Kris Lindahl goes on to explain, “Since it is an election year, an extension of the 2007 Mortgage Debt Relief Act may not happen before it expires. So far neither side has said that they are going to renew the bill.”
“The 2007 Mortgage Debt Relief Act is a hot topic right now, as to whether congress will approve and extend the 2007 Mortgage Debt Relief Act to 2014, or 2015 before the end of the year.” Kris Lindahl explains. “It will be interesting to see what happens, because there have already been a few bills that have been turned down this year which included an extension for the 2007 Mortgage Debt Relief Act.”
Kris Lindahl elaborates by saying, “The first attempt was by the Democratic Senator Debbie Stabenow of Michigan who proposed to extend the bill through 2013. The next 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.”
“At this point all we really know is we have a few months to get as many Minnesota short sale loans approved as we can, so my team and myself are working around the clock with homeowners,” Kris Lindahl the top Minnesota Short Sale Agent explains. Kris adds, “We are also working with Wisconsin residents helping them get Wisconsin short sale loans approved, so for homeowners that live in Minnesota or Wisconsin it is imperative that they contact us as soon as possible while there is still time.”