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Increased Taxes May Come To Distressed Homeowners in Alexandria VA – Debt Relief Act Ending Soon
If Congress does not extend the Mortgage Relief Debt Forgiveness Act by December 31, 2012, homeowners in Alexandria VA will no longer be exempt from federal taxes on forgiven debt.
Increased Taxes May Come To Distressed Homeowners in Alexandria VA Soon – Mortgage Forgiveness Debt Relief Act Expiring This Year
Alexandria, VA – [September 42, 2012] – Distressed Homeowners in Alexandria VA may face additional taxes if Congress does not extend the Mortgage Forgiveness Debt Relief Act that is scheduled to sunset on December 31, 2012. When homeowners face a foreclosure, or choose to participate in a short sale, there may be tax consequences resulting in federal income taxes due on the amount that is forgiven. Under President George Bush, legislation was put in place to allow qualified homeowners an exemption of up to $2,000,000.
“For Alexandria VA this is a big deal,” says Tamara Inzunza, CDPE with RE/MAX Gateway, “we have helped many underwater homeowners facilitate short sales with their lenders. Some have even received up to $3000 at closing to assist with relocation expenses. Reduced federal income taxes has been a driving incentive for Alexandria VA homeowners to participate in a short sale. If Congress does not act soon to extend this law, we could see more foreclosures which would devastate property values that seem to now be on the upswing.”
According to statistics from Metropolitan Regional Information System (MRIS), there have been 170 distressed sales that have closed in Alexandria City since the first of the year, 89 of these have been short sales.
“Short sales are beneficial to the homeowner and the neighborhood,”
The median sales price for homes in the City of Alexandria VA peaked this year in May of 2012 at $500,000; in August it was $484,000, according to real estate statistics from RBIntel. We saw the five year low back in February of 2009 where the median sales price was $315,000.
“The housing recovery will be a driving force behind economic recovery,” says Inzunza,”with the record low interest rates and a shortage of inventory, buyers are finally returning to the market at a record pace. Buyers want to buy when they see the values going up. If Congress does not extend this law and the incentive is no longer available for homeowners, then more foreclosures could mean another downturn in the real estate market for our area.”
Tamara Inzunza has developed a free report entitled “Your First Steps To Avoid Foreclosure”
About - To learn more about short sales and foreclosure prevention in Alexandria VA, visit www.MyPrivateShortSale.com or call 1-800-803-2550 x3038. Tamara Inzunza, of RE/MAX Gateway offers no-obligation, no-fee consultations to homeowners.
Page Updated Last on: Sep 24, 2012