For homeowners that are avoiding a West Chester Short Sale because of potential tax consequences there is good news for you. Thanks to the Mortgage Debt Forgiveness Relief Act you may be able to get out from under your distressed property without any added tax ramifications. Contact an experienced agent today to discuss whether you can qualify for a West Chester Short Sale and this great program.

When a homeowner completes a West Chester Short Sale there is often a large amount of debt forgiven. This amount is the difference between the selling price of the home and the balance due on the mortgage. Because this money was initially borrowed to purchase the home but never repaid it is considered to be income. Because of this the IRS will require that a w-2 is issued which will ultimately raise your tax bill in April. If you are like many homeowners that are completing a West Chester Short Sale your home was purchased near the top of the market. This will likely mean thousands, if not hundreds of thousands, of dollars in forgiven debt that will show up as income. Many homeowners looking to complete a West Chester Short Sale are already facing financial issues and cannot take on this added pressure come April. Thanks to the Mortgage Debt Forgiveness Relief Act homeowners are able to complete their West Chester Short Sale while also avoiding any potential hefty tax bills. This Act of Congress is set to expire at the end of 2013 which means time may not be on your side. On average a West Chester Short Sale will take four to six weeks so contact your agent soon to get started.

Make sure your agent has experience in order to find out if you qualify as soon as possible. This once in a lifetime chance to avoid foreclosure while also receiving a tax break is a great chance at a fresh start. Contact a West Chester Short Sale agent today and get started on your road to recovery.