By Tom Branch, on January 2nd, 2013  The American Taxpayer Relief Act of 2012 passed both the House and the Senate over the past couple of days. The bill is on it’s way to the White House where President Obama has stated he will sign it into law as soon as possible.
While the primary thrust of the bill was to prevent massive tax increases there were a number of “extenders” in the bill as well.
According to the National Association of REALTORS®, “Of most interest to real estate, the bill would extend 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. Without the extension, any debt forgiven would be taxable, which, for underwater households, represents a financial burden.”
This is good news for many Americans who are working through a short sale, deed-in-lieu, or a foreclosure. Without an extension of the Mortgage Forgiveness Debt Relief Act, many of these people would have owned thousands of dollars to the IRS as a result of the distressed sale of their primary residence.
Have questions about short sales? Contact us at 214-227-6626.
Photo: Licensed from iStockPhoto
By Tom Branch, on August 21st, 2012  Some good news from Washington today. According to the Daily Herald:
“A bill that would extend the Mortgage Forgiveness Debt Relief Act through 2013 has been passed by the Senate Finance Committee and advanced to the full chamber for possible action next month. The law spares homeowners who receive principal reductions on their home loans from being hit with hefty federal income taxes on amounts forgiven, extends tax write-offs for mortgage insurance premiums, and continues some energy-efficiency tax credits for remodeling and new home construction. The extension could affect millions of homeowners who are underwater, late on their payments and headed for foreclosure, short sales or deeds-in-lieu of foreclosure.”
This is great news for homeowners facing foreclosure or trying to complete a short sale of their primary home.
Photo Licensed from iStockPhoto
The Act has been extended. http://www.thebranchteam.com/wordpress/2013/01/02/mortgage-forgiveness-debt-relief-act-extended/
By Tom Branch, on July 4th, 2012 Another The Colony, TX short sale closed! The sellers avoided foreclosure, the buyers purchased a nice home at a discount, and the lender did not have the losses involved with a foreclosure.
Many people feel that the nation’s economy rises and falls with the housing market. While this is often true, we believe the current housing crisis is a direct result of the economic downturn and massive job loss across the nation.
In the Short Sale community, the vast majority of homeowners did not get a bad loan or buy more house than they could afford; they’re just good, hardworking Americans who fell on bad times.
All indicators point to Short Sales being on the real estate horizon for the foreseeable future, at least through 2012, and maybe longer.
We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.
Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.
Photo Copyright 2012 Imaged2Sell
By Tom Branch, on April 30th, 2012 You may think Short Sales were created in response to the housing market meltdown in 2007, but they have been around for years.
As Gina and I wrote in our book, The Field Guide to Short Sales, “They have not been widely used in the past for two reasons:
1. The lender could seek a deficiency judgment against the borrower for the amount of the loss. Laws vary from State to State, but the lender was able to garnish wages, engage a collection agency to collect the debt, or seek other legal relief.
2. The lender can elect to forgive all or a portion of the mortgage balance. However, until 2007, the amount forgiven became taxable income. The lender simply issued an IRS Form 1099 to the borrower. The tax implications were dramatic. If the lender forgave $100,000 and issued an IRS Form 1099 to the borrower for the same amount, the borrower potentially wound up owing the IRS tens of thousands of dollars depending on their tax rate.
The Mortgage Forgiveness Debt Relief Act was a major piece of legislation passed by Congress and signed into law by President George W. Bush. The Act offered relief to homeowners, who, after a Short Sale, owed taxes on the forgiven mortgage debt. This relief is great news! Most homeowners no longer have to pay taxes on that forgiven debt. The Act applied to debts forgiven between 2007 and 2009, but was extended through 2012 by the Economic Stabilization Act of 2008.”
Unless Congress takes action to extend the Act, the relief from paying Federal taxes on forgiven debt will expire on December 31, 2012. This could end up costing a distressed homeowner tens of thousands of dollars in Federal taxes.
If you are considering a Short Sale, you may want to get started quickly. Given the time it takes to get the sale approved and the buyer to close, time is quickly running out.
Want to talk to a real estate team with a proved track-record and knows how to get them done? Contact us at 214-227-6626 or visit our website at www.ntxshortsales.com.
Photo licensed from iStockPhoto
By Tom Branch, on April 4th, 2012 Another short sale closed! The sellers avoided foreclosure, the buyers purchased a nice home at a discount, and the lender did not have the losses involved with a foreclosure.
Many people feel that the nation’s economy rises and falls with the housing market. While this is often true, we believe the current housing crisis is a direct result of the economic downturn and massive job loss across the nation.
In the Short Sale community, the vast majority of homeowners did not get a bad loan or buy more house than they could afford; they’re just good, hardworking Americans who fell on bad times.
All indicators point to Short Sales being on the real estate horizon for the foreseeable future, at least through 2012, and maybe longer.
We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.
Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.
Photo Copyright Imaged2Sell
By Tom Branch, on May 6th, 2011  Copyright 2011 - Imaged2Sell 4 Bedrooms | 2 Baths | 2-Car Garage | 2140 SF/Tax
Little Elm TX Home For Sale – Lender approved short sale at list price. Former model home with extensive front landscaping and large covered porches. Hardwood floors in entry, study, and formal dining. Island kitchen features granite counters and stainless appliances. Kitchen opens to living area with stone corner fire place. Master has dual vanities, garden tub, and walk-in closet. Designer touches include chair rails, crown molding, French doors, and upgraded lighting.
Little Elm Texas Home For Sale for Current Pricing, Details, Photos, and Virtual Tour.
See all Little Elm TX Homes for Sale.
Source: NTREIS
By Tom Branch, on April 15th, 2011 Another short sale closed! The sellers avoided foreclosure, the buyers purchased a nice home at a discount, and the lender did not have the losses involved with a foreclosure.
Many people feel that the nation’s economy rises and falls with the housing market. While this is often true, we believe the current housing crisis is a direct result of the economic downturn and massive job loss across the nation.
In the Short Sale community, the vast majority of homeowners did not get a bad loan or buy more house than they could afford; they’re just good, hardworking Americans who fell on bad times.
All indicators point to Short Sales being on the real estate horizon for the foreseeable future, at least through 2012, and maybe longer.
We encourage homeowners across the United States to get educated on the options available should they become financially distressed. Short Sales are a great tool, providing relief to all parties.
Just remember to choose a REALTOR® with a proven Short Sale track record to negotiate on your behalf. Making the right choice can mean the world of difference to your financial future.
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