On December 18, 2015 president Obama signed the Mortgage Forgiveness Tax Relief Act of 2015. This bill extended the benefits of a 2007 bill which allowed homeowners who had gone through any kind of mortgage forgiveness to exclude that debt from their income tax filings. In plain English if your mortgage company forgave any amount of your debt, you do not have to pay income taxes on the amount.
Why is this important? For every homeowner falling behind on their mortgage looking for a loss mitigation option this is a big deal. Let’s say you just went through a short sale and and your lender is offering to forgive $50,000 of your debt. Amazing, right? Now what if you were expected to pay income taxes on that $50,000? What would be your incentive to go through the grueling short sale process if you would have to pay taxes on that amount anyways?
This is great news for sellers who are having to do a short sale in 2016. A lot of our potential clients hesitate in doing a short sale because they don’t know that they can walk away free and clear from their debt and not have to worry about re paying the lender or paying taxes on the difference.
This bill means that short sales and loan modifications will continue to be attractive options for homeowners facing foreclosure. Many of our clients ask about the tax implication after a short sale. The bill has continued to be extended since 2007 and with 2015's bill it will be extended for another two years.
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
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I have had the privilege of knowing Mr. Thomas for 20 years as a personal friend and as a businessman. I came to Mr. Thomas last year in need of a house to purchase in a very short time period. He spent the very next day with me looking for a home that fit my needs to the letter. He was knowledgeable about the area, the market, and the best route to advise us on. Because of him, we live in a wonderful home that fits our needs, our budget, and our taste. I could not recommend him more to do business with.