11.2.2012 – Mortgage Debt Relief

With the end of 2012 nearing and the new year right around the corner, it can be a time of reflection for many.  At year’s end we often review personal and professional experiences. Throughout 2012 in this blog, the Arizona and California real estate markets have been in a constant state of review. It has been interesting to follow the changes close to home and throughout the U.S.

The end of this year also signifies the possible end of The Mortgage Forgiveness Debt Relief Act. Since 2007, this law has given some house sellers tax relief on mortgage debt forgiven by lenders. However, this debt relief act is set to expire on December 31, 2012 unless Congress makes a move.

With the decline in our economy more property owners chose the short sale process to avoid foreclosure. The Mortgage Forgiveness Debt Relief Act was intended to assist distressed borrowers, including short sellers. However, since additional criteria is considered, a short sale alone may not qualify you to receive this benefit. So, whether or not this law stays in effect won’t necessarily make a difference to some Americans involved in a short sale.

Below is a link to a Union Tribune San Diego article discussing this related real estate and tax relief opportunities and issues.

Possible Expiration of The Mortgage ForgivenessDebt Relief Act

If you want to learn more detailed information about The Mortgage Forgiveness Debt Relief Act, the link below will take you to the IRS website with more about the law.

Find out more about The Mortgage Forgiveness Debt Relief Act.

If you have been involved with a short sale, foreclosure or another glitch in your credit history, such as a bankruptcy, you may have a hard time getting financing again from a traditional bank. However, unlike traditional banks, Source Capital is a private money lender and while they abide by all governmental laws and policies, they look at the whole picture. Because they take the time to get to know you, hear your personal story and consider all aspects of your situation, they are able to offer loans where other lending institutions simply can not. When you are ready to make your next purchase don’t take no for an answer until you have given Source Capital the opportunity to try and help you.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans throughout  Arizona and California. We lend in all major cities in Arizona including, Phoenix, Tucson, Mesa, Chandler and Glendale and also in California, including San Diego, Los Angeles, San Francisco, Anaheim, San Jose, Fresno, Oakland, Sacramento, Bakersfield and Riverside. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor, contact them at 858.705.6144. You can also email loan experts Sacha Ferrandi and Pat Hook using Source Capital’s convenient online form.

Liking Source Capital on Facebook or following us on Twitter are easy ways to keep up with this blog and the changing real estate market. If you want to learn more about us, read some of the reviews our hard money loan clients, private money investors and real estate brokers have posted on our Google profile page. Have a great weekend! –Sindi Somers