All “good” things must come to an end. So is the Mortgage Debt Relief Act. Unless renewed, at the end of 2012 – it will stop serving it’s purpose. That purpose is to allow for “debt relief” for everyone that Short Sales their real estate “correctly”.
In most cases, if our short sale clients home sold for $200,000 less than the amount owed – they are exempt to pay income tax on the difference.
That was not the case before 2007 when the debt relief act became law. But, as with all great programs, this one came with a expiration date.
December 31, 2012 🙁
Here is what you need to do. Contact a Short Sale professional before you do it alone. Santa Clarita Short Sale experts are at your call.