Pursuing a short sale or loan modification will less the amount of debt forgiven and taxable amount"
Jacksonville, NC (PRWEB) December 24, 2012
On January 1, 2013, the Mortgage Forgiveness Debt Relief Act of 2007 will expire. Originally passed in 2007, this exempted struggling homeowners from paying taxes on debt forgiven in a short sale, foreclosure, or loan modification.
With the expiration of this act, homeowners must once again report any forgiven mortgage debt as taxable income. According to Walter Whitehurst, CDPE, ERA Wilkinson and Strother Real Estate, this newly re-levied tax makes avoiding foreclosure more important than ever for struggling homeowners.
“If homeowners pursue alternatives to foreclosure, such as a loan modifications or short sales, they can lessen the amount of debt forgiven, reducing the taxable amount.” says Walter Whitehurst, CDPE, ERA Wilkinson and Strother Real Estate.
“For example, with a short sale, homeowners have some control over the final sales price. They can use knowledge real estate agents to get as much as possible for their homes. In a foreclosure, the foreclosed home simply goes to auction,” said Whitehurst.
“In fact, homes sold during the pre-foreclosure process, or homes sold via a short sale, sold on average for 26% less than non-foreclosure homes, while foreclosed homes sold for 32% less. For homeowners, this difference can mean thousands of dollars in potential savings. ”
As a Certified Distressed Property Expert (CDPE), Walter Whitehurst is specially trained to help homeowners who find themselves facing foreclosure. “I’m committed to helping homeowners who are struggling,” Walter Whitehurst said. “Too often, homeowners facing foreclosure believe there is nothing they can do, but there is.”
Walter Whitehurst has developed a free report to address specifically how the expiration of the Mortgage Forgiveness Debt Relief Act affects them, and illustrates the benefits of various foreclosure alternatives. This report, entitled, “Attention! Distressed Homeowners: Avoiding Foreclosure Is More Important than ever,” is accessible from his website, http://www.StopForeclosureJacksonvilleNC.com
Walter Whitehurst, is a Realtor with ERA Wilkinson and Strother Real Estate of Jacksonville, NC. Wilkinson and Strother is one of the largest real estate firms in the Carolinas and is one of the top ten ERA franchises in the nation.
For more information, please contact:
walter.whitehurst (at) gmail (dot) com