Help Struggling Home Owners
Thousands of homeowners are reluctant to do Short Sales!! Delay and not still taken action by the congress on renewal of mortgage debt forgiveness Act has put already struggling thousands of homeowners in problematic situation this year and they can be in same boat in the coming year 2015.
Many have received bank approvals to go ahead with short sale but they are not going forward with it, due to the potential tax bill, from IRS, they will face stemming from debt forgiven from their short sale deal. One can easily see the connection of political games being played in the black hole in the Congress to the non-decision on this matter. All agree it is good thing to renew the Bill but all are not agreeing to take action for that end. Again the homeowners are the ones who get hit. Politicians have nothing to lose.
Right now homeowners who are struggling with mortgage payments and/or their mortgage being upside down are facing a two-edged sword so to speak. If they decided not to use the opportunity of short sale they lose the chance of getting rid of a chunk of their mortgage debt, on the same token if they choose to do the short sale they can be charged with tax bill for the amount forgiven.
People are in dilemma because they don’t know which direction to take. Is the congress going to help out struggling home owners? Time will tell. Contacting your representatives requesting a favorable action may help. Let’s hope the congress will take a promising decision and pass the bill and renewal make it affecting retroactively.