Short Sale Opportunities Increase With Passage Of Mortgage Forgiveness Debt Relief Act
Investors prospecting for “short sales” and other pre-foreclosure opportunities got a big boost from Congress and the White House recently. Congress passed long awaited legislation to prohibit the IRS from demanding income tax payments from home sellers whose lenders write off a portion of the outstanding debt balance owed on the loan.
Under the previous law, delinquent home owners heading for foreclosure had to factor a federal tax code into their decisions on whether to participate in a short sale or other transaction involving debt forgiveness. Now that tax burden is totally off the table, at least until 2010. In the meantime, investors and Realtors should encounter one less objection by home sellers to participating in a short sale.
search for : short sales, pre-foreclosure, delinquent home owner
