There is great news to look forward to in the real estate market.
“The Senate Finance Committee has passed a two-year retroactive extension of tax relief for households who’ve had mortgage debt forgiven by a lender as part of a short sale or loan modification,” according to REALTOR® Mag.
This is a direct benefit for homeowners who are involved in a short sale or load modification, but it is also a relief for the housing market. The number of foreclosures and short sales affect the housing market. Steve Brown, president of NAR®, clarifies that the number of short sales has risen from about 100,000 in 2011 to over 250,000 in 2013.
The full Senate and House of Representatives must approve to extend the Mortgage Debt Relief Act for homeowners to be protected.
Steve Brown explains, “Congress believes that the extension of the Mortgage Debt Relief Act is not necessary, because the housing market is recovering.” However, if it is not extended, homeowners will be forced to foreclose, which hurts the property value and slows the housing market.
Watch the video below to hear Steve Brown explain the details of the current situation of the Mortgage Debt Relief Act.
To find out how we can help you with a short sale, give us a call at (972)342-0011.