The California Legislature passed a bill, now on it's way for Gov. Schwarzenegger to sign, that will provide state tax relief to many Santa Clarita homeowners who performed a short sale on their home, selling it for a loss, and below what they owned on their mortgage. It will certainly help those who are contemplating performing a Short Sale in Santa Clarita as well.
Until this bill, homeowners with a recourse loan (not purchase money), have had to claim the amount of debt forgiven by a bank, as income, when it comes to their California state income taxes. While there is already a Federal Mortgage Debt Forgiveness Act, this particular California Mortgage Debt Forgiveness Act will come in handy to those who have been hit hard by home values dropping, and have had to perform a short sale.
Gov. Schwarzenegger is expected to sign the bill in the coming days. If you need to perform a short sale on your Santa Clarita home…contact us @ The Robert and Brian Team @ 661-964-1760 so we can guide you through the process.
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