Mortgage Forgiveness Debt Relief Act May Impact Your Wallet
A common question in the minds of worried homeowners facing foreclosure or trying to sell their homes is whether they’ll get hit with an unexpected tax bill if the Mortgage Forgiveness Debt Relief Act is not extended. Stuart bankruptcy attorney Jeffrey J. Saunders can help local homeowners understand the impact of the Mortgage Forgiveness Debt Relief Act.
On Thursday, February 20th at 6:30PM, Attorney Saunders is sponsoring a free seminar at our firm’s Stuart office at 759 South Federal Highway to clearly explain how various debt resolution options may impact homeowners, whether the law is extended or not. The same seminar is also scheduled for Thursday, February 27th, 6:30 PM, in Port St. Lucie at the Holiday Inn at 10120 South Federal Highway Both seminars are free, open to the general public and realtors, and are available on a first-come, first-serve basis. Space is limited so please arrive early.
Law Allows Underwater Homeowners to Come Up for Air
Generally, when debt is forgiven by a lender, it is considered a taxable event to the individual who originally incurred the debt. If a person had a $100,000 mortgage, sold his home for $80,000, and the lender forgave the remaining indebtedness, then the homeowner would be required to pay taxes on the forgiven portion of the loan. In 2007, in the midst of the housing meltdown, Congress passed the Mortgage Forgiveness Debt Relief Act, which generally allows homeowners to avoid paying taxes on the mortgage debt forgiveness on their principal residence.
The Mortgage Forgiveness Debt Relief Act has been extended twice since 2007, but it expired on December 31, 2013. Anxious homeowners, realtors and lawyers are waiting to see if Congress will extend the expired tax break. “It’s important for homeowners to understand their options, regardless of whether the law expires or is extended,” says Attorney Saunders, who has extensive experience negotiating mortgage related debts with lenders. “There may be many options available and it can be confusing to homeowners. That’s why we offer our free educational seminars, so that we can answer many of their questions,” he added.
For more information about the upcoming seminars, or to learn more about the ways in which Crary Buchanan can help with your particular situation, call 772.287.2600.