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01-08-2008, 04:20 PM #1
Condominium
- Join Date
- Jan 2008
- Location
- Orcutt, CA on the Central Coast
- Posts
- 116
The Mortgage Forgiveness Debt Relief Act
This is not exactly a legal issue but is a very important subject and this appeared to be the best place place to post it.
I imagine most people in the real estate business have heard about this but just in case you haven't, it's something that could be very beneficial to your clients and your business, especially if you have anything to do with short sales.
A very important new Bill was passed recently which will affect many people in a positive way. The main reasons I'm posting it here is that I'm getting a lot of questions about it and because everybody is still not aware of it.
This is of vital importance to anyone in any stage of foreclosure, anyone with the possibility of going into foreclosure or for you to pass along to someone you know that has or may in future have a foreclosure problem.
On Dec. 20, 2007 the president passed Bill HR 3648, The Mortgage Foregiveness Debt Relief Act of 2007 which will be in effect for the next 3 years. This means that when someone sells their house on a short sale they won't have to pay taxes on the deficiency amount like they used to. This is huge. For instance someone selling their house for $50,000 less than amount of the mortgage used to have to pay taxes on that amount which could total as much as $20,000. Talk about being kicked when you're down. This bill may mean a little light at the end of tunnel for some homeowners who have lost their homes.
This is an overview of the bill and I'm sure there are a lot of conditions attached to it that will apply on a case by case basis. If you want to know more about it just Google the name of the bill.
Thank you,
Don
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01-15-2008, 07:18 AM #2
Fixer Upper
- Join Date
- Jan 2008
- Posts
- 90
Debit Relief
Thanks for the update and explanation. I will check it out further I had heard something about a bill but had not researched exactly what or who it benefited.
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