Extension of Mortgage Debt Relief Act through 2015 in Process!

debt relief act extension 2015

Looks like the Mortgage Debt Relief Act will be extended through 2015 which is fantastic news for short sale sellers!

New legislation has just been introduced to the House and Senate to extend the mortgage debt relief act through the end of 2016! This will take extra burdens off of short sale sellers.

Without this act, sellers would have to claim the forgiven debt as income on their taxes. They would end up paying hundreds to thousands of dollars for taxes on the money that was forgiven for their short sale. If they owed $350,000 on their mortgage and it was short sold for $300,000, they would have to count that $50,000 as income and be taxed on it!

Here is an article further explaining the extension process.

This tax relief act will definitely help sellers in the already difficult short sale process! If you have questions about the short sale process and laws in Northern Virginia, please give our team a call! We would love to help you through the process.

Jennifer Young Homes

Keller Williams Realty

(703) 774-9572