“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.
Sunfish Lake, MN (PRWEB) November 08, 2012
“The 2007 Mortgage Debt Relief Act is set to expire at the end of 2012,” says the Sunfish Lake 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 $150,000, and their home ends up selling with a short sale process where the bank gets $100,000, the homeowner will have to pay taxes on the $50,000 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.
“The 2007 Mortgage Debt Relief Act is a hot topic right now,” Kris Lindahl, a #1 Edina Realty short sale agent 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 to extend the 2007 Mortgage Debt Relief Act was by the Democratic Senator Debbie Stabenow of Michigan who proposed to extend the bill through 2013. The next attempt to extend the 2007 Mortgage Debt Relief Act 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 to extend the 2007 Mortgage Debt Relief Act was by Democratic Representative Charles Rangel of New York proposed a 2 year extension.”
“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.
Call the experienced Sunfish Lake Short Sale Agent Kris Lindahl at the new national short sale hotline (877) 371-1733 for short sale information. Download a copy of the “Homeowners Guide To Short Sales” at the HomeownersGuideToShortSales.com website.