On December 20, 2007, President Bush signed legislation that created a three-year window during which home owners will not be taxed on debt forgiven during refinancing or the sale of their home. This is very significant for those homeowners considering a Short Sale.
Until the Mortgage Forgiveness Debt Relief act of 2007 was signed into law, homeowners utilizing a Short Sale solution to sell their home for less than they owed on it received a 1099 Form from their lender in the amount of the debt forgiven by the lender as part of the Short Sale. This often times created additional hardship for people already struggling financially. As President Bush said when he signed this act into law, "When you're worried about making your payments, higher taxes are the last thing you need to worry about."
This change to the tax laws now makes a Short Sale solution an even more attractive option for struggling homeowners who are facing foreclosure.
Do you qualify for a Short Sale in the Dallas / Fort Worth area? Need to speak with a Short Sale Specialist? Please email or call today for more information. I will be happy to schedule a consultation so that we can get started on helping you move forward.
http://www.whitehouse.gov/news/releases/2007/12/20071220-3.html
