As part of the fiscal cliff deal, the Mortgage Debt Forgiveness Act of 2007 (http://www.irs.gov/
The extension means Menifee 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. Menifee Short sales continue to derive over 20% of residential sales during recent quarters. This extension is big news for primary Menifee 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.
If you are still thinking to do a short sale of your home in Menifee, now is the right time to get started. We are certified HAFA short sale specialist agents and have helped many Menifee Homeowners avoid foreclosure