In my last post, I described the short sale process. Some have expressed concerns about the effect the resulting debt-forgiveness of a short sale has on your tax situation. In prior years, any form of debt-forgiveness on a mortgage was considered earned income. Now, however, the Mortgage Forgiveness Debt Relief Act of 2007 allows a 3-year window for homeowners to refinance their mortgage with no tax penalty on any debt relief that is received. This act will increase the incentive for borrowers & lenders to work together to refinance loans , and realtors to negotiate short sales to avoid foreclosure.  This act only applies to principal (homestead) property.

Click here for more information on the Mortgage Forgiveness Debt Relief Act.

Don't forget to visit Central Florida's premier real estate website at gatearty.com for all your real estate needs!

 

 
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Real Estate Agent: Gate Arty (Gate Arty & the Group - Keller Williams Realty)
Gate Arty
Lakeland, FL
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