With the Expiration of the Mortgage Forgiveness Debt Relief Act, Avoiding Foreclosure Is Now More Important Than Ever
Pensacola, FL -- (SBWIRE) -- 01/02/2013 -- On January 1, 2013, the Mortgage Forgiveness Debt Relief Act of 2007 expired. Originally passed in 2007, this exempted struggling homeowners from paying taxes on debt forgiven in a short sale, foreclosure, or loan modification.
With the expiration of this act, homeowners must once again report any forgiven mortgage debt as taxable income. According to Shane Willis, a Certified Distressed Property Expert with RE/MAX, this newly re-levied tax makes avoiding foreclosure more important than ever for struggling homeowners.
“If Pensacola homeowners pursue alternatives to foreclosure, such as a loan modifications or short sales, they can lessen the amount of debt forgiven, reducing the taxable amount.” says Shane.
“For example, with a short sale, homeowners have some control over the final sales price. They can use a knowledgeable real estate agent to get as much as possible for their homes. In a foreclosure, the foreclosed home simply goes to auction,” said Willis.
“In fact, homes sold during the pre-foreclosure process, or homes sold via a short sale, sold on average for 26% less than non-foreclosure homes, while foreclosed homes sold for 32% less. For homeowners, this difference can mean thousands of dollars in potential savings. ”
As a Certified Distressed Property Expert (CDPE), Shane Willis is specially trained to help homeowners who find themselves facing foreclosure. “I’m committed to helping homeowners who are struggling,” Willis said. “Too often, homeowners facing foreclosure believe there is nothing they can do, but there is.”
Shane has developed a free report to address specifically how the expiration of the Mortgage Forgiveness Debt Relief Act affects them, and illustrates the benefits of various foreclosure alternatives. This report, entitled, “Attention! Distressed Homeowners: Avoiding Foreclosure Is More Important than ever,” is accessible from his website, http://www.shanewillis.com/pensacola-short-sale.aspx
About Shane Willis
Shane Willis is a Certified Distressed Property Expert and FL Broker with Re/Max in Pensacola FL. Webpage is www.shanewillis.com