December 21st, 2007 Categories: Crofton Real Estate 3
Crofton MD Real Estate –
Most Crofton MD residents won’t be affected by the new tax bill signed by President Bush yesterday, but anyone who purchased or refinanced their home in the past 2–3 years could be, if the loan balance is higher than today’s selling price. That situation is known as a “short sale”.
Homeowners were taxed on any amount forgiven by a lender in a short sale negotiation or foreclosure, in the past, creating a tremendous financial burden. Now, under The Mortgage Relief Act (click here), the loan amount written off by your lender will no longer be considered taxable for debts forgiven between Jan. 1, 2007, and Dec. 31, 2009.
“When you’re worried about making your payments, higher taxes are the last thing you need to worry about,” President Bush said. “This is going to make a happy holiday for many homeowners.”
Senator George Voinovich, R-Ohio, who authored this legislation, said “Removing this tax penalty encourages homeowners and lenders to work together voluntarily so that payments are manageable and foreclosure can be avoided.”
The bottom line to you, if you purchased or refinanced your Crofton home in the past couple of years, is that things just got better for you if you have lived in the home for two of the past five years, and have to sell now – even if you owe more than your Crofton home is worth today. While you may not reap the profits you anticipated, at least you can walk away from your current mortgage with a short sale, and not have to worry about any additional tax burden.
Selling your Crofton home in this market requires more than luck… There is no substitute for experience! In the past I have actually helped clients negotiate VA compromises, MIP bail-outs, and short sales – not just read about them or attended a “how to” class. If you are “upside-down” with your mortgage loan and want to sell your Crofton-area home now, contact me to find out how I can help you
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