The Mortgage Debt Relief Act might have expired last December, but not to worry, it could be coming back.
Everybody was surprised when the act was allowed to expire last year due to tensions in the capital, especially considering the tremendous support for its renewal. The good news, however, is that there is an extension that has made its way through the senate finance committee. Although this in no way guarantees the act's resurrection, it does mean that we are on the right track. The estimate for the act's renewal is around December 2015, and if this act happens it will be retroactive back to January 1st.
Another protocol was enacted earlier this year that altered the window for lenders to pursue deficiencies. Lenders used to have five years to demand deficiency after forgiveness, but as of now, Florida's law states that lenders only have one year.
So what does this all mean?
If you did a short sale and thought you would have to face tax implication--in other words, taxation on the forgiven debt--you do not have to worry about that anymore.
In addition, due to the reduced window for lenders to claim deficiency, there is much less time spent worrying about whether the lender can turn around and sue for the forgiven amount.
If you are or were on the path to foreclosure, it is important to recognize your options. Nowadays, so many people in distressed properties are not weighing all of alternatives. We understand that the process can be exhausting and daunting, but it does not have to be when given the right tools.
One in every 469 South Florida residents have filed for foreclosure. The reality is that there are a lot of people who need help and the right information for their situations.
The amount of foreclosures in Palm Beach County is up from last month. The perception that foreclosures are few and far between is simply not true. However, not all is bad, the amount of foreclosures has indeed fallen by 24% since last year.
When deciding between doing a short sale or filing for foreclosure, the decision is simpler that you think. Foreclosure is perhaps the worst case scenario, whereas with a short sale, the costs are not as high. In fact, the lender actually covers all professional expenses in short sale. That means you do not have to worry about affording the right expertise to properly sell your home if you are already underwater.
The average foreclosure can take up to years; that is years of unresolved stress and uncertainty. With a short ale, it can be completed in a few months. That means after a few months, you have a chance at a fresh start.
Extensions on foreclosures are harder to come by, as well. It used to be easy to get up to six months in extensions, but now, sixty days may be the most that is possible. This reduces the time frame and induces even more stress.
Trust the Treu Group. We combine knowledge from all corners of the real estate market. Not all short sales are the same, nor should they be treated as so. Have a luxury home in distress? We utilize our luxury marketing plan with our short sale strategy.