Attention Home Owners in Oregon! This article written by real estate agent Michael Russell in Kansas applies to us too!
If you are considering a short sale, the clock is running out. The Mortgage Debt Relief Act expires at the end of 2012. If an extension is not granted, you will likely be paying taxes on the debt forgiven. Waiting to sell your home CAN cost you, a lot, in this case. We have Short Sale experts in our office to help navigate the financial institutions, so don't put off selling your home in short sale any longer. Call or email me to get started.
Are you behind on mortgage payments or struggling to keep up? Is your house worth lees than what you owe the bank? Then you may be considering a short sale. That means selling your house and asking the bank to accept the lesser proceeds as final payment. What a lot of people don't know is that the difference between what your home sells for and what you owe the bank is generally taxable. But in 2007 congress passed a law called The Mortgage Debt relief act of 2007 it allows in most circumstances for you not to pay taxes on foregiven debt.
There is one big problem, it expires at the end of 2012. Baring an extension, if you request and receive a short sale on home after December 31st 2012 you will receive a 1099 and be required to file that with your taxes and pay tax on the foregiven debt.
So if you are considering a short sale? You can do one of 2 things. Move up your time frame and get your home on the market now or you can hope and pray that congress extends the relief and you can sell in 2013 with no tax penaty?
The Russell Home Team are Certified in Short Sales and Foreclosure Prevention. We are also a preferred Realtor by Bank of America.
The Russell Home Team specializes in Johnson County Kansas Homes and Real Estate for sale. We are tech savvy realtors with over 10 years experience. Please join us on our Social Networking Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...