{"id":5299,"date":"2008-09-21T14:51:13","date_gmt":"2008-09-21T19:51:13","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/09\/21\/the-mortgage-forgiveness-debt-relief-act-of-2007-has-lessened-an-important-concern-for-foreclosed-homeowners-taxes-this-has-been-a-worry-when-a-lender-decides-to-forgive-some-of-the-debt\/"},"modified":"2008-09-21T14:51:13","modified_gmt":"2008-09-21T19:51:13","slug":"the-mortgage-forgiveness-debt-relief-act-of-2007-has-lessened-an-important-concern-for-foreclosed-homeowners-taxes-this-has-been-a-worry-when-a-lender-decides-to-forgive-some-of-the-debt","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=5299","title":{"rendered":"The Mortgage Forgiveness Debt Relief Act of 2007 has lessened an important concern for foreclosed homeowners, taxes. This has been a worry when a lender decides to “forgive” some of the debt."},"content":{"rendered":"
by Rob Kosberg<\/div>\n

One example is when a foreclosed home sells for less money than is owed on it. The mortgage lender will sometimes accept this lesser amount, while considering the mortgage to be “paid in full”.<\/p>\n

This is often called a “short sale” because the lender is “short” of the full amount owed.Prior to Thursday, the IRS treated the forgiven mortgage debt as taxable income. This added thousands of dollars to a foreclosed homeowner’s tax liability. <\/p>\n

For instance, there could be $12,500 in taxes owed from $50,000 “short sale.” Since the bill was passed, the homeowner will not have to pay tax when a lender accepts a lesser amount and “forgives” the debt. <\/p>\n

The bill has two sides, though. In order to recover the estimated $650 million<\/a> in tax revenue that will be lost, Congress has limited the amount of tax breaks available on the sale of second\/vacation homes. That will be impactful on homeowners, too, of course.<\/p>\n

If you think the Mortgage Forgiveness Debt Relief Act of 2007 will impact you personally, be sure to talk<\/a> with your accountant.<\/p>\n

\n
About the Author:<\/div>\n
If you are in the market to Buy a Home then visitRob Kosbergs’ Detailed FREE Guide on Buying your Dream Home with a No Money Down Mortgage<\/a> or for up to date Mortgage info visit my Mortgage Blog<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

One example is when a foreclosed home sells for less money than is owed on it. The mortgage lender will sometimes accept this lesser amount, while considering the mortgage to be “paid in full”.<\/p>\n","protected":false},"author":1135,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[91],"class_list":["post-5299","post","type-post","status-publish","format-standard","hentry","category-sales","tag-sales"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1135"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5299"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5299\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}