Hello short sale experts!
Wanting to get some opinions on the extension of the mortgage forgiveness debt relief act beyond 2013. Although we were able to avert the fiscal cliff last week, the large federal deficit calls for more budget battles ahead. The 1.3B dollar loss from the extension of this act may be a provision unable to survive through the next FY.
We may have a clearer picture in Feb. but what are your thoughts on this topic? Thanks!
Peter
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On January 1st, Congress signed the H.R. 8, the American Taxpayer Relief Act of 2012. The mortgage cancellation relief for home owners or sellers who have a portion of their mortgage debt forgiven by their lender, typically in a short sale or foreclosure sale for sellers and in a modification for owners is extend through 2013.
Additionally, deductions for mortgage interest, mortgage insurance premiums and state and local property taxes, are
extended. The exclusion from capital gains with the cap at $500,000 ($250,000 for individuals) remains in effect (subject to limitations).
This is good news for the real estate industry. Now we just have to make sure that we try not to repeat the financial crisis again. To see what we can do to keep ourselves from foreclosure during 2013 you can check out my recent blog article "Avoid Another Foreclosure Crisis – Take Matters Into Your Own Hands".