Good News for Homeowners who Need to Sell
by Justin Lukasavige

Many homeowners across the country are finding they can no longer afford their homes.  As unfortunate as that may be there are many options available to you to make a wise decision.  For resources on how to sell a home if you owe too much, check out the article I wrote a few months ago.

The good news comes in the law passed by Congress recently; the Mortgage Forgiveness Debt Relief Act of 2007.  Generally speaking, if you had a foreclosure, deed-in-lieu of sale, mortgage loan modification or a short-sale you were issued a 1099 for the forgiven amount or deficit.  You would then have to pay taxes on that amount.

Short-sales are a great option for a homeowner who finds they can no longer afford their home.  The Mortgage Forgiveness Debt Relief Act excludes homeowners in a short-sale (and any of the other above mentioned situations) from having to pay taxes on this amount only in 2007, 2008 and 2009.

If you cannot afford your home, do not wait until it is too late and you lose it.  Make the decision to do something now.

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