Yesterday Congress finally reached a settlement in the fiscal cliff negotiations. The good news is that the Mortgage Forgiveness Debt Relief Act has been extended through 2013. This means that the exemption from taxation for mortgage debt that is forgiven when homeowners negotiate a short sale, loan modification (including any principal reduction) or foreclosure will continue. I encourage clients to consult with a tax and legal adviser when considering any action leading to debt forgiveness.
Please call me at (209) 471-0285 if considering a listing a Stockton short sale, Manteca short sale, Tracy short sale, Ripon short sale, Lathrop short sale or Lodi short sale. I am a Central Valley short sale specialist.