For homeowners who are avoiding a Chester County Short Sale due to the potential tax consequences I have good news for you. Thanks to the Mortgage Debt Relief Forgiveness Act homeowners that qualify may be able to get out from under thei mortgage debt while avoiding foreclosure and a heft tax bill. Make sure to contact an experience agent today to learn more about completing a Chester County Short Sale with this new found information. The Mortgage Debt Relief Forgivess Act was initially passed by President Bush but has been extended through the end of 2013. When a homeowner completes a Chester County Short Sale the difference between the selling price is forgiven by the lender. Because this money was borrowed from the bank and never repaid it is considered income by the IRS and will require that a w-2 is issued for miscellaneous income. For homeowners that bought their home in the last five to ten years this could mean thousands of dollars in forgiven debt that is added to your tax bill. Many homeowners who find themselves in need of a Chester County Short Sale will likely not have the additional funds available for this tax payment. Homeowners is this situation are likely to feel trapped between a massive tax bill come April or the long term penalties of a foreclosure. Thankfully this Act of Congress allows homeowners to waive any additional taxes that result from their Chester County Short Sale. However, with no extension in sight it is important that homeowners act fast in order to get their Chester County Short Sale approved by the end of the year.

If you are considering a Chester County Short Sale contact a trusted agent today to learn more about the Mortgage Debt Relief Act and whether or not you qualify. Taking advantage of this program can help you avoid foreclosure plus a large tax bill while moving on with your life. So act fast in order to make the most of your current real estate options in the Chester County area.