Lake Elsinore Mortgage Debt Forgivness Act Extended Through 2013.

Jan. 7, 2013 - PRLog -- This is just another great news for Lake Elsinore Homeowners who are trying to Short Sale their home this year. Lake Elsinore Home Owners can now rest easy and won’t face a massive tax bill as a result if they complete the Short Sale in 2013.As part of the fiscal cliff deal, the Mortgage Debt Forgiveness Act of 2007 (http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-) has been extended for one more year. Under normal circumstances in Lake Elsinore Short Sale, debt forgiven as a result of a short sale or mortgage modification would count as income for tax purposes. For instance, if somebody owes $250,000 on their mortgage and their lenders agrees to a $200,000 short sale, $50,000 in debt is forgiven. This would have been taxable without an extension of the law.



The extension means Lake Elsinore homeowners will still be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set
to expire Dec. 31 2012. Since the MFDRA was established, countless homeowners have received tax relief from the debt forgiven at completion of their short sale. Lake Elsinore Short sales continue to derive over 20% of residential sales during recent quarters. This extension is big news for primary Lake Elsinore homeowners burdened by unmanageable mortgages. Without an extension, homeowners who completed short sales or mortgage modifications may have faced tax bills in the tens of thousands of dollars. Some industry officials feared that would hurt the housing recovery. The Act is now set to expire Dec 31, 2013. For more information, visit IRS (http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-D...).

If you are still thinking to do a short sale of your home in Lake Elsinore , now is the right time to get started. We are certified HAFA short sale specialist agents and have helped many Lake Elsinore Homeowners avoid foreclosure.