Comments on: Does the Mortgage Forgiveness Debt Relief Act apply to short sales? http://www.realestategranite.com/blog/47/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales/ Real Estate Investing Education, News, and Deals, real estate club Fri, 03 Feb 2012 19:43:24 -0800 hourly 1 http://wordpress.org/?v=3.1 By: niejohn4 http://www.realestategranite.com/blog/47/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales/comment-page-1/#comment-198 niejohn4 Thu, 30 Oct 2008 12:46:54 +0000 http://www.realestategranite.com/short-sales/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales#comment-198 very interesting. Anything related to digestion is a pretty personal topic. If you're interested in more info based on mass response to this, check out this <a href="http://www.creditsolutions.com/" rel="nofollow">debt consolidation</a> page very interesting. Anything related to digestion is a pretty personal topic. If you’re interested in more info based on mass response to this, check out this debt consolidation page

]]> By: ananamas http://www.realestategranite.com/blog/47/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales/comment-page-1/#comment-167 ananamas Mon, 13 Oct 2008 21:57:59 +0000 http://www.realestategranite.com/short-sales/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales#comment-167 Yes, the act would apply to you. However, the act applies to the amount of debt forgiven, which is not exactly the same as the purchase and sale prices. For example, let's say you bought the house for $200,000 but took out a $195,000 mortgage. By now the mortgage has been paid down to $193,000. However, the house is now only worth $160,000 so that is how much you do a short sale for. So the amount of debt forgiven would be $193,000 minus the $160,000 the bank received, or $33,000. Also, keep in mind that the act only applies to debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.<br><b>References : </b><br>IRS Yes, the act would apply to you. However, the act applies to the amount of debt forgiven, which is not exactly the same as the purchase and sale prices.

For example, let’s say you bought the house for $200,000 but took out a $195,000 mortgage. By now the mortgage has been paid down to $193,000. However, the house is now only worth $160,000 so that is how much you do a short sale for. So the amount of debt forgiven would be $193,000 minus the $160,000 the bank received, or $33,000.

Also, keep in mind that the act only applies to debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.
References :
IRS

]]> By: Michelle Schoen http://www.realestategranite.com/blog/47/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales/comment-page-1/#comment-178 Michelle Schoen Mon, 13 Oct 2008 17:45:10 +0000 http://www.realestategranite.com/short-sales/does-the-mortgage-forgiveness-debt-relief-act-apply-to-short-sales#comment-178 Please also keep in mind that it only applies to you if this is your primary residence. It does not apply to investment properties. Michelle Schoen The Permanent Record, LLC Short Sale Negotiator Please also keep in mind that it only applies to you if this is your primary residence. It does not apply to investment properties.

Michelle Schoen
The Permanent Record, LLC
Short Sale Negotiator

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