Chicago real estate attorneys explain extended debt relief act

Chicago real estate attorneys explain extended debt relief act

Chicago real estate lawyers

At Mages & Price, our real estate lawyers in Chicago are firmly committed to our client’s needs. We remain focused on ensuring that our clients receive everything they are entitled to throughout their homeownership experience. As such, our real estate law experts are working hard to educate our clients on what they can expect from the newly extended Mortgage Forgiveness Relief Act.

 

Mages & Price LLC: Helping Homeowners Understand Benefits Of Debt Relief Act

In an effort to avoid the potentially disastrous fiscal cliff, Congress passed the American Taxpayer Relief Act of 2012. This Act included extending the Mortgage Forgiveness Debt Relief Act. Originally slated to expire on December 31, 2012, the extension on this Mortgage Forgiveness Debt Relief Act now grants homeowners access to its benefits through December 31, 2013.

 

Mages & Price: Experts Of Real Estate Law In Chicago

Under the Federal tax code, forgiven debt (aka the delta between what the homeowner owes and what the loaning entity receives after closing) must be treated as income, bringing with it a wide range of prospective tax penalties. Had the Forgiveness Act not received congressional approval, homeowners would have had to claim their forgiven debt as taxable income, posing potentially disastrous financial consequences for homeowners already embroiled in monetary turmoil facing either a short sale or pending foreclosure.

With the most recent extension, the Mortgage Forgiveness Debt Relief Act offers tax immunity on forgiven debt based on a short sale or loan modification on amounts up to $2 million dollars, proving an invaluable incentive for homeowners attempting to realign their financial situations. While this latest congressional Act can prove instrumental for those struggling to make their mortgage payments, it’s important to note that it can also help homeowners who aren’t currently facing financial difficulties; with the market’s debt to value ratio consistently in flux, even those without financial hardships may find themselves exploring short sale benefits should they need to sell their home. The Mortgage Forgiveness Debt Relief Act can help ensure that they successfully satisfy their mortgage requirements without potentially jeopardizing their comprehensive financial health in the event of a short sale.

 

Contact Us Today

Do you have questions about your mortgage or a real estate short sale? Mages & Price’s team of real estate attorneys in Chicago can help. Contact us at 847.405.7600 for more information today!

 

Disclaimer: None of the information on this website shall be considered legal advice and should not be relied or acted upon as such. No attorney-client relationship has been established between you and Mages & Price LLC as the only way to establish such a relationship is by contacting our office and entering into a written and signed attorney-client agreement.  

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