Do I get a 1099 if I do a short sale?
A: Almost certainly, yes, you will get a 1099 if you complete a short sale.
The Mortgage Forgiveness Debt Relief Act Expires 12/31/2012
In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to the housing crisis and economic crash, suddenly found themselves not only with a loss of their home, but with an enormous tax liability.
The act has helped many homeowners who went into default to get out from under more debt. In this case, a debt to the IRS.
The Mortgage Debt Relief Act was always intended to be a temporary solution and it is now set to expire at the end of 2012. For distressed homeowners, this means that the window is limited for you to take advantage of this tax break.
Here is the link to the IRS site: http://www.irs.gov/individuals/article/0,,id=179414,00.html
Time is running out. We will need to find a buyer for your home and negotiate your short sale all before December 31, 2012. It takes approximately four to five months to close a short sale. This doesn’t not include the time it takes to find a qualified buyer.
There is still a chance to change your financial direction and avoid foreclosure, but it’s a race against the clock.
Fill out this form today and start your short sale today.
*Tania Michaels and Focus Commercial are not tax experts. Please contact your CPA or accountant for tax advice.
**IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.