So Breath Normally, St Petersburg Resident, You Are Good For This Year!
If the Mortgage Debt Relief Act would not have been renewed for 2013, it could have created a serious damper on the real estate market recovery and growth this year. Fortunately for many home owners planning on going through a short sale this year the Act has been renewed. Even if you will receive a 1099 form you will not be taxed on that amount. Phew!
Since 2007 when Act was initiated it helped thousands of families to avoid paying taxes on the virtual income they haven’t really received. The money is lost for the home owner and for the bank. However, many of the banks got bailed out, the homeowners didn’t. In some cases (like HAFA short sales) the sellers are offered some cash from the lender, but often the sellers have to bring some money to closing, which can be a challenge for the sellers.
Despite many efforts by lenders to simplify and speed up the short sale process, it remains to be tedious and often very frustrating. Too often Realtors put tremendous amounts of time and paperwork into processing a short sale only to see a deal fall apart because of un-cooperating lender.
Need more information about processing your short sale? Call us now: 727-417-4495