Mortgage Debt Tax Relief Ends December 31 2012 - Temecula Short Sales

By
Real Estate Agent with REALTY EXECUTIVES OTF BRE #01824145

Temecula Valley California homeowners will be faced with another obstacle to short sale starting January 1, 2013. The mortgage debt tax relief is scheduled to end December 31, 2012.

What this means is forgiven mortgage debt will now be taxable if, and if is the big word, the mortgage debt tax relief act is not extended, or some version thereof, put in to law. Given the general election this November, the mortgage debt tax relief act is not a number one priority for Congress.

Although the National Association of Realtors® is calling for the mortgage debt relief to be extended, at this point, it is an uncertainty.

Given the complexity of short sales and the financial impact they can have on the future to Temecula Valley California homeowners, it has always been broker recommended a homeowner considering a short sale consult with a licensed tax professional, CPA or attorney. 

Short sales are especially complex when there has been a refinance, or there is a second mortgage. Bankruptcy can also impact the success of a short sale. Although the good word may be short sales are easier, in reality this is not the case. Banks have share holders they are responsible to, and are not so quick to approve short sales. The process can drag on for months, keeping both sellers and buyers on edge "waiting for an answer," and then the answer may not be what both were expecting.

If a Temecula Valley California homeowner is underwater in their mortgage, it may be best to explore other options before jumping to a short sale. Loan modification, bankruptcy, or renting the property may help to alleviate the problem. Each homeowner's situation is different and a short sale may not be for every homeowner who is underwater in their mortgage. 

Most experts agree, that the mortgage debt tax relief, if not extended, will impact short sale sellers in the coming year.

Posted by

 

REALTY EXECUTIVES of Temecula Valley

Pamela Seley, Seals the Deals

REALTOR®

REALTY EXECUTIVES OTF  

Direct 951.491.4063

31213 Temecula Valley Parkway, #100, Temecula, California 92592 

Direct: 951.491.4063 | Office: 951.326.3100

Email: pamelaseley@realtyexecutives.com

CA BRE License # 01824145

Website: The Temecula Valley

 

 

Your Temecula Valley and Menifee Lakes California Real Estate Agent | Representing home sellers and home buyers in Southwest Riverside County California since 2007

  

 

Subscribe to my blog 

email button

 

 

 

 

 

All information deemed reliable, but not guaranteed. Copyright © 2008-2014 by Pamela Seley, REALTOR® 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
California Riverside County Temecula
Tags:
mortgage debt tax relief
temecula short sales

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,541,837
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Pamela, those homeowners facing foreclosure or need to short sale may think about doing so quickly in light of this information. 

Nov 05, 2012 02:18 PM #1
Rainmaker
707,802
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

Joan, it may be too late in the game now to do a short sale and make the December 31 deadline, unless it were one loan, and lender has given borrower approval to go ahead with short sale. Not most cases, though. 

Nov 05, 2012 02:37 PM #2
Post a Comment
Spam prevention
Show All Comments
Rainmaker
707,802

Pamela Seley, REALTOR®

Seals the Deals in Temecula Valley California
Ask me a question
*
*
*
Spam prevention

Additional Information