Does the Mortgage Forgiveness Debt Relief Act apply to all debts?

Congress passed a bill including, The American Taxpayer Relief Act of 2012 (Sec. 202) which extends the Mortgage Forgiveness Debt Relief Act through December 31, 2013. This legislation extends dozens of other tax cuts that have expired or are set to expire at the end of the year, including one that extends homeowners’ ability to deduct the cost of mortgage insurance on a qualified personal residence.

Under the federal tax code, all types of forgiven debt are treated as income, subject to regular taxes. Because of the Mortgage Forgiveness Debt Relief Act, homeowners who get their mortgage debt forgiven through either a short sale or loan modification won’t be taxed on the amount forgiven up to $2 million. This law was set to expire December 31, 2012. If it hadn’t been extended, any forgiven amount of debt would be considered taxable income, which would be devastating for homeowners who are already experiencing financial hardship. If you're in search of mortgage relief, a short sale is still a better option than foreclosure. 

The recommmendatiion to all my investors selling in a short sale, make sure you have a very sharp CPA! If you are in search of mortgage relief contact me at kgblady@cfl.rr.com. My team and I helped so many investors relieve mortgage distress in 2012, please reach out and let us help you!

USDA Home Loans in Brevard County, FL

Not all properties are eligible to receive rural funding with a USDA Home Loan.  In order to be eligible for  a USDA loan, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.

The USDA only provides funding in Non-Rural areas.  These are areas that lie outside non-rural areas as defined by the USDA's Satellite Grant Program Request for Proposals (RFP), published in the Federal Register on May 7, 2010. The term "rural area" means any area, as confirmed by the latest decennial census of the Bureau of Census, which is not located:

– within a city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or


– an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants

USDA home loans are ideal for first time home buyers or anyone who qualifies within the income guidelines. Please contact me at kgblady@cfl.rr.com to obtain more information about USDA home loans.

Owners with No Equity Refinance with HARP

Many of our owners at Showcase Property Management who are struggling with an upside down mortgage are ecstatic when they learn they may be able to refinance using HARP. My sales administrator, Agi Anderson has been working closely with Chris Brown who is with Certified Mortgage Planners. Chris is one of Florida’s leading experts on HARP, the Home Affordable Refinance Program, one of the only programs available to help investors struggling with mortgage distress. There are qualifications to be eligible for HARP, you must have a Fannie or Freddie backed loan. Watch the short video below and Chris Brown will explain how to check if your loan is Fannie or Freddie backed:

Our aim is to help owners with mortgage relief. If you don’t qualify for HARP and you think you may want to sell, just email me at kgblady@cfl.rr.com and I will have Agi Anderson get in touch touch to explain the short sale process.