The South Florida Business Journal reported today that the legislation passed by congress to avoid the fiscal cliff included an extension of the Mortgage Debt Relief Act until January 1, 2014.
This extension will provide tax relief for “mortgage forgiveness” on primary residence properties. This means that homeowners doing “short sales” in 2013 will not be burdened with a tax bill for debt relief when the bank forgives a portion of the mortgage in order to facilitate the sale of the property (without resorting to foreclosure).
Without this legislation many homeowners may have elected methods other than a “short sale”. For homeowners who are “way underwater” on their homes with no means of paying a modified or existing mortgage payment, the short sale may be their best (and only) alternative to avoiding foreclosure.
Here is a link to the complete article:
For questions about buying and selling real estate in Orange County, contact Scot Campbell.
He is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.
He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable.
Read his profile and client reviews at www.ScotCampbell.com
He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com