The debt relief act, which was set to expire on Dec. 31, gave homeowners a break from paying tax on the mortgage debt that is forgiven by a bank as a result of a short sale or principal mortgage reduction.
Now, struggling Valley homeowners who short-sale their home this year – sell it for less than is owed to the lender – won’t have to pay a hefty tax on the forgiven amount. The act also prevents the lender from coming back to collect that debt in the future.
The Guarantee short sale informational meetings will be held 6 to 8 p.m. Jan. 22 and 11 a.m. to 1 p.m. Jan. 26 at the Guarantee office at 5380 N. Fresno Street, Suite 101. Call (877) 575-7765 to reserve a seat.