ORANGE COUNTY - SHORT SALE - REALTOR -new law

The Mortgage Forgiveness Debt Relief Act of 2007

from your ORANGE COUNTY SHORT SALE REALTORMike Pahua 949-309-2400 ext. 5

This new law will affect many people who are considering the short sale of their home. New legislation will now limit the amount of tax you will experience when you short sale your home. With the old laws, when you sold your home short of what was owed to the lender would receive a 1099 for the amount of money forgiven by that lender. For example, if the lender forgives $150,000 in mortgage debt through a short sale you would be liable for the income tax on an addition $150,000 in income for that year.

With the new laws, the lender will still send a 1099 for the amount of forgiven debt however there are certain new rules that will allow many people to not have to pay the taxes on the "phantom income".

If you are considering the short sale of your home and would like to speak with a seasoned ORANGE COUNTY SHORT SALE REALTOR then please call Mike Pahua at 949-309-2400 ext 5.

If you have more questions about Short Sales visit, Orange County Short Sales FAQ.

To read more about the new laws visit, The Mortgage Forgiveness Debt Relief Act