As the Mortgage Debt Relief Act expires, distressed homeowners are running out of time
Distressed homeowners on Maui will soon no longer be able to take advantage of the Mortgage Debt Relief Act. The law enacted in 2007 helps distressed homeowners by relieving them of additional tax responsibility that often accompanies canceled or forgiven debt.
For many homeowners, even if the bank agreed to cancel or lessen their debt, they were unable to afford the extra taxes that they owed, according to a spokesperson for the Distressed Property Institute.
“In many cases, the additional taxes would equal tens of thousands of dollars. It was like trading one unmanageable debt for another,” the spokesperson added.
The Mortgage Debt Relief Act has provided opportunity for millions of distressed homeowners in the marketplace to take advantage of short sales or loan modifications without worrying how these actions will affect their future finances.
The law is set to expire, and time is running short for homeowners with an unaffordable mortgage to take advantage of its benefits.
As a Certified Distressed Property Expert (CDPE), Lee Potts is knowledgeable about the landscape of foreclosure avoidance options and is distinctly qualified to negotiate with banks and help financially strapped homeowners regain peace of mind and a sense of stability for the future.
A free report entitled “Time is Running Out: How the Mortgage Debt Relief Act can save you” is accessible from Potts’ website at www.alohapottshelpsmauihomeowners.com/.