California and San Diego real estate mortgage defaults are literally off the charts as of the first quarter of 2008. Recently I’ve been helping some new clients who got in over their heads with house debt and un-refinancable Adjustable Rate Mortgages. A recent article details some of the issues you’ll need to know about when navigating the tax waiver law from the Mortgage Debt Forgiveness Act of 2007. Read the full San Francisco Chrinicle article HERE.
Congress, Bush and the real estate industry hailed the Mortgage Forgiveness Debt Relief Act of 2007 as a boon for struggling homeowners who might face a big tax bill if they restructure or give up on their mortgage. But like everything that comes out of Washington, it is full of fine print that borrowers should fully understand before they decide how to get out from under debt they can’t repay. The rules are extremely complex. I bring this up to show how important it is for homeowners in trouble to get professional tax and legal advice before acting.
Get info directly from the IRS HERE on the Mortgage Debt Forgiveness Act of 2007.
