SB 401 is set to work in line with the IRS Mortgage Debt Relief Act of 2007 forgiving tax liabilities that could affect Californians who disposed of their property through a Short Sale in 2009 . It also includes relief for those who received a reduction of principle through a Loan Modification or Cancellation of Debt income from a foreclosure.
Who is affected:
- If you were party to or will be a party to a Short Sale, Foreclosure or Loan Modification between 2009 and 2012. 2007 & 2008 already had this provision, SB 401 extends this relief now up through 2012.
What Do You Have to Do to Participate?
- If you qualify for the IRS Mortgage Debt Relief Act, then you could possibly qualify for SB 401.
WARNING: There are serious liabilities related to home loans if you are foreclosed on, participate in a deed in lieu or participate in a Short Sale. Make sure to consult with an attorney
DISCLAIMER: I am not a Tax professional nor is this information offering you Tax Advise. This is merely a report on the current passage of SB 401. All information above should be verified with your Tax Preparer/Professional.
For more information you can read: Simi Valley Short Sale Information on this blog HomeBuysBlog.com
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Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate