Mortgage Forgiveness Debt Act for Bend Oregon on
Bend Oregon Real Estate Tidbits
Yes, the final act by the 112th Congress to avoid the fiscal cliff was a significant victory for homeowners! As part of the legislation that cleared the US House of Representatives, Congress extended the cancellation of the mortgage debt relief provision for one year, through the end of 2013!
So what exactly does this mean for homeowners?? If a lender forgives some portion of a homeowner’s mortgage in 2013, either as part of a Pre-Foreclosure/Short Sale or Foreclosure, or in a loan restructuring that reduces principal, the Owner/Seller WILL NOT be required to count that forgiven amount as income tax purposes!
This is HUGE and very important because now:
(1) Homeowners won’t be forced to pay a tax on money they have already lost with cash they never received … and will never receive.
(2) There are more than 20% of current homeowners with a mortgage in a distressed financial situation owning more on their homes than the current market value that would have been directly affected.
(3) The housing market, while recovering slowly, is still fragile enough that this tax relief is necessary to provide a much needed stability in the coming year.
Birtola Garmyn High Desert Realty
Your Real Estate Consultants
Jim Birtola & Ruben Garmyn
541-312-9449
www.BendOregonRealEstate.com
We SOLD over $1 Billion Of Central Oregon Real Estate Since 2001
