Are you aware that you may be losing your right to tax exempt debt relief by the end of 2012? Though we are not tax accountants, there are serious tax consequences that may affect those who consider doing a short sale or modification after the Mortgage Debt Relief Act of 2007 expires. It expires 12/31/2013, which means that any tax exemptions you may wish to receive from canceled debt may no longer be available if you choose to do a loan modification or short sale after this date (for primary residences). This means that you may need to close your short sale/loan modifications before 2012 is over to get these benefits.

Some may speculate that when President Bush signed this bill that the recession would be over by 2012. However no one foresaw that the recession would last this long. For this reason, there is a possibility that this bill could be extended for the sake of millions of homeowners nationwide, however it is certainly not guaranteed.

Want us to explain it to you better in detail and want us to introduce you to a tax accountant who can better assist you? Go to our Contact Us page call/email us and we’ll help you right away. Time is of the essence in real estate, and it also very pertinently applies to this debt relief as well.

Are you already convinced you need to do a short sale or loan modification? Then don’t wait– Contact Us now so you can get debt relief!

Disclaimer: Information reliable but not guaranteed. We do not give tax advice. Seek a tax accountant to receive tax advice.

EDIT: Congress passed a bill to extend the debt relief act to the end of 2013. If you would like to see it extended further, contact your local congressperson and ask them to extend the act to your benefit.