Short Sale, Loss Mitigation Department and Mortgage Forgiveness Debt Relief Act of 2007.
If you are losing your home you need to speak with an experience Real Estate Broker to protect your most valuable position, your home. It may not be to late, but you need the right negotiators working for you.
It is very important to know about and understand the Mortgage Forgiveness Debt Relief Act of 2007, says that for Foreclosures, short sales and mortgage restructuring for less than the current balance on the mortgage, there will be NO TAX on the forgiving debt if:
1. the debt relief was incurred between 2007 and 2009.
2. the debt was for purchase and improvement of the house.
3. the debt was secured by the borrower's primary residence.
4. the amount forgiven wa no more than $2 million for the married couple.
5. Tax will be due if vacation home, rental property, cash out to pay off medical bills, credit cards, buy other property, or trips. The Deficiency Tax will be paid by borrower.
Wells Fargo is selling their own real estate and that is ok, what is surprising are the neighborhoods the properties are in. $350,000 and higher homes in the richy rich, good schools, safe community has been hit pretty hard. Our economy has taken effect on middle income and you will see many more homes up for sale.
Be a Good Neighbor! And share your information as a professional and an experienced Broker/Agent. The best way is to become proficient yourself.
I have met so many Brokers and Agents that are not Students of: Efficiency, Facts, Real Estate Laws, Estate Planning, Ways and means of How to save your house, Avoid Foreclosure, etc..
After speaking with several Brokers and their agents, I discovered many do not want to know and have just one view, "How do I sell and make my commission". Everything else is "I don't know, I don't want to Know!" We have the greatest profession in the world, and we sell pieces of the earth one piece at a time.
We should pride ourselves to know our business very well and the surrounding points about it. Help our neighbors and you will make a very good living, but know what the heck you are talking about first. And we all come out winners!.
