When the sun sets on the Mortgage Forgiveness Debt Relief Act on December 31, 2012, many people are going to be sad that they missed the huge tax breaks. Don’t let it happen to you!
What is this?
If you owe more on your home than you think it is worth or are behind in your mortgage payments, you may be in a position to benefit from a short sale and from this tax break.
What is a short sale?
Watch this 90-second video that explains short sales.
[youtube]http://www.youtube.com/watch?v=49sS88Cbsc8[/youtube]
A short sale is an honorable process that can help you and help your credit recover. A short sale can keep you from a foreclosure which stays on your credit record for 10 years. And, a short sale can allow you to be eligible for a new loan in as little as two years!
You CAN avoid foreclosure, your credit CAN be saved, and your financial future CAN be salvaged!
How long does it take?
Many short sales are taking 2-3 months to complete, so time is running out to take advantage of this tax break. If your short sale is not complete before January 1, 2013 the difference may be considered taxable income. At the moment, it is unclear whether Congress will extend this deadline or not. Click here to learn more details from the IRS about this law.
What kind of tax break is it?
For example, if you owe $350,000 on your property and it sells for $250,000, at a tax rate of 28% the settlement difference of $100,000 is $28,000 in taxes you may owe! But, if you complete your short sale before the expiration date you may not have to claim that $100,000 as taxable income.
What do you need to do NOW?
Facing the possibility of losing your home can be overwhelming, so it’s always best to talk to an expert. Here at The Bittinger Team, our Realtors are also Certified Distressed Property Experts (CDPEs) who understand the current state of the real estate market and the special circumstances you are in. To learn more about the CDPE designation, just click here.
We successfully helped 65 short sale owners and/or buyers in 2011 and we helped another 23 so far in 2012.
Please contact us, The Bittinger Team, right away to discuss your options. As always, there is no obligation to consult with our experienced Plymouth, Canton, and Northville Michigan real estate professionals.
In most cases, a short sale results in NO COST to the seller. Call us today at 734.459.2600 to get your home sold!