Homeowners that are concerned about the potential tax consequences of a short sale have a great opportunity available that is almost gone. Thanks to the Mortgage Debt Relief Forgiveness Act homeowners can complete a short sale while also avoiding the taxes that result from the sale. Contact your Tucson real estate agent today to learn more about this great program and ulitmately sell your distressed property.
This federally sponsored program has already helped thousands of homeowners save thousands of dollars when it comes time for tax day in April. When a short sale is completed your lender forgives the difference between the selling price of your home and the balance of your mortgage. Because this debt was initially loaned out to purchase the home and never re-paid it is considered to be income by the IRS. This will require a w-2 from the government in order to pay taxes on a portion of this money. While your Tucson real estate agent can sell your home for the highest and best offer available it likely will be for much less than what you bought the home for. Especially if you purchased your home in the last five to ten years at the height of the market. Given the drastic change in home prices over that time period the amount of debt being forgiven could be in the hundreds of thousands of dollars. Your Tucson real estate agent can provide you more information about the Mortgage Debt Relief Forgiveness Act and the benefits it provides homeowners. However, this program is set to expire at the end of 2013 so it is important to act fast. A short sale on average takes four to six weeks from start to finish which leaves little room for error or waiting.
Give your Tucson real estate agent a call today to start discussing the benefits of completing a short sale. These great opprtunities will not be around forever and it is always important to consider your long term real estate goals.