Helpful links for Short Sale Investors
If you’re always quoting stuff about short sales but can’t remember exactly where you heard it, well then you’re like me.
I thought it would be useful to start posting links to information that’s critical to our short sale business here on the blog. One of the first links that we’ll share is a link to a Wikipedia page summarizing the “Mortgage forgiveness debt relief act of 2007″.
This was an act that George W. Bush signed that gives relief to homeowners from having to pay taxes on cancelled mortgage debt. This is a critical piece of knowledge when you’re talking to a homeowner who is facing foreclosure and is considering his or her options in light of a pending trustee’s sale or sheriff’s sale.
You can assure the homeowner that if they sell the property to you through a short sale and the bank approves your short sale offer that they will not be taxed on the debt that is forgiven. The original act was intended to cover debt forgiven in the calendar years 2007 through 2009, but thanks to the “Emergency Economic Stabilization Act of 2008″ this was extended to cover debt forgiven until 2012. (At least a few more years before struggling homeowners have to own up for debt forgiven)!
This is the kind of information that we have made a habit of printing out and hanging in our office so we can quickly and easily reference the information. Well here’s the link, be blessed and successful!
LINK: http://bit.ly/dnjKm9
