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Tax Relief Act For Short Sales and Foreclosures In Effect Until 2014

Great news on the housing front! As part of the 2013 Fiscal Cliff negotiations, the Mortgage Debt Relief Act has been
Mortgage Debt Relief Act extended through 2013extended through 2013.

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Originally passed in 2007, the Mortgage Debt Relief Act gives homeowners who short sell their property the opportunity to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage refinancing or loan modification, as well as mortgage debt forgiven in connection with a foreclosure, qualifies under this act as well.

The Mortgage Debt Relief Act originally applied to debt forgiven between the calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible under this act, or $1 million if married filing separately. This will not apply if the forgiveness of debt is due to services performed for the mortgage company or lender, or any other reason not directly related directly to a decline in property value or the homeowner’s financial status.

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If you are a homeowner, you may have received a solicitation in the mail for companies that will help you obtain a tax reassessment on your property. First of all, what is a tax reassessment?

Basically, a tax reassessment pertains to the amount of property tax you pay on your property. If your home loan is higher than the value of your property, or if your property’s value has decreased since your last tax bill, you can request a reassessment of your property to try and lower the amount you pay in property taxes. This is something that any homeowner can do fairly easily.

However, there are companies out there who will solicit homeowners to offer to help obtain a property tax reassessment for a fee. While this practice is technically legal, there seems to be no regulation in what these companies may charge for their service, or what sort of guarantee their service offers.

Again, this is something that homeowners can do for free without being charged a fee from so-called Property Tax Reassessment companies.

Team Montemayor will gladly help answer your property tax reassessment questions and even help you obtain the information you need to file your own reassessment at no charge. Feel free to contact us at 661-510 2789 or 661-290-3802, or visit http://bringingyouhomescv.com for details.

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