Selling your Miami Beach home this year has many advantages. The Miami Beach housing market is prime for Sellers and Buyers, inventory continues to be absorbed and Miami Beach home values are UP. As a Miami Beach luxury waterfront home-owner especially, buyers are practically snapping up properties as fast as they can. With the market booming even those who are trying to sell via short sale can get in on the buying action! If you have been specifically considering a short sale for your Miami Beach home, you’ll be excited about the Mortgage Forgiveness Debt Relief Act. This act from 2007 was extended through the end of 2013, therefore you can sell your Miami Beach Home now to take full advantage.
The Mortgage Forgiveness Debt Relief Act
Th Mortgage Forgiveness Debt Relief Act extends mortgage cancellation relief. This helps for home owners and sellers through disallowing taxes on the portion of their mortgage debt forgiven by their lender. Miami Beach sellers would greatly benefit this in this real estate market.
As short sales have represented a large sector in the Miami Beach housing market of late, the extension is seen by many as key to a continued recovering South Florida housing market. According to the U.S. Foreclosure & Short Sales Report™ complied by RealtyTrac, the last quarter of 2012, showed short sales as representing 19 percent of residential home sales in the United States. See the full report by clicking here.
According to RealtyTrac Vice President Daren Blomquist, the increase in short sales and distressed properties showed that “both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure.” (especially for Miami Beach sellers who were previously distressed) Blomquist went on to explain the risk if Mortgage Forgiveness Debt Relief Act expired. Miami Beach homeowners would have seen their income tax increase since the unpaid loan balance created by the short sale would have been considered taxable income for many home sellers.
With this recent extension, if you are a Miami Beach home owner interested in a short sale for your luxury waterfront home, you now have until December 31, 2013 to benefit from the reduced taxes provided by Mortgage Forgiveness Debt Relief Act.