This month the US House of Representatives passed the vote to continue the Mortgage Debt Forgiveness Act for all home owners whom were involved in a short sale for 2014. In 2007 the Mortgage Debt Relief Act was initiated basically meaning that homeowners whom have suffered financial hardships and had to short sell their homes cannot be taxed for the difference of the sale price and what was owed with their loan. Prior to 2007 any debt forgiven in a short sale was considered income and the home owner was responsible for claiming the debt forgiveness as income on their taxes for the year the short sale took place.
For more information on the Mortgage Debt Relief Act:
Tatyana Sturm and The Storck Team have been honored to serve the Denver and surrounding areas in relocation real estate for the last 10 years as one of Denver’s leading short sale specialists. If you or someone you know is facing foreclosure, make sure you are educated on your options. You might have equity or money in your home that you are unaware of in this ever changing real estate market. Call or text The Storck Team at (720) 350-5909.