The 2007 Mortgage Debt Relief Act provides an exemption for the $100,000 as taxable income for the homeowner.
Victoria, MN. (PRWEB) October 23, 2012
Kris Lindahl, the experienced Victoria short sale agent, published a new report with information on how people can use the 2007 Mortgage Debt Relief Act to save thousands of dollars. Kris Lindahl warns people though, that the 2007 Mortgage Debt Relief Act is set to expire at the end of December 2012, so time is running out for people to take advantage of the act.
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.
Kris Lindahl, the experienced Victoria, MN. Short Sale Agent explains that 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,” Kris Lindahl, the experienced Victoria, MN. short sale agent adds, “if the mortgage is $200,000, the home short sale amount collected by the bank is $100,000, then 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.”
The experienced Victoria, MN. short sale agent, Kris Lindahl and the Kris Lindahl Short Sale Team can help homeowners across the country with their short sale, so call today at (877) 371-1733, or visit the Short-Sale-Calculator.com website that Kris Lindahl created to help homeowners determine if their home is eligible for a short sale.