Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sales – Will Mortgage Debt Relief Be Returning?

taxesFor Knoxville homeowners facing foreclosure, the expiration of the Mortgage Forgiveness Debt Relief Act was a major disappointment. On December 31, 2013, the Mortgage Relief Act expired, meaning that any Knoxville homeowner that does a short sale or that goes through foreclosure this year, will be required to pay taxes on any forgiven debt. So, is there still hope for the Mortgage Debt Relief Act to be extended? Yes, there may still be some hope. The Senate Finance Committee recently approved a tax package that would extend the Mortgage Debt Relief Act for another two years. The extension of the Act would mean that any homeowner that went through foreclosure this year or that did a Knoxville short sale would not be required to pay taxes on that income. The tax package also included an extension of tax deductions for mortgage insurance premiums and energy saving improvements on homes. In order for the Mortgage Debt Relief Act to be extended, it must get the full approval of both the House and the Senate. With any luck, the Mortgage Debt Relief Act will hopefully be extended. Both sides of the political aisle have been in support of the Act, since it has helped countless homeowners since 2007. The Act allows any Knoxville homeowner that has gone through foreclosure, done a short sale, or completed a loan modification from paying an unnecessary tax on the forgiven debt. For Knoxville homeowners facing foreclosure, the act has been a saving grace. It is enough to have to do a short sale, go through foreclosure, or completed a loan modification, but to face a huge tax burden after that can be completely overwhelming. For any Knoxville homeowner facing foreclosure, we can only hope the Act will be extended this year. There are still many Knoxville homeowners facing foreclosure or in the process of completing a short sale. Are you facing foreclosure on your Knoxville home? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure, give us a call today for a free consultation.

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