Essex Mortgage Bank in Santa Rosa, CA. Has Been Helping Homeowners Since 1986 with FHA and Conventional Financing They Are Specialists in California First Time Home Buyer

Santa Rosa, CA, April 17, 2010 --(PR.com)-- A new California state law enacted at the eleventh hour allows residents to immediately exclude forgiven mortgage debt from their taxable income.

The measure, “SB 401,” permits most taxpayers to exclude canceled mortgage debt up to $500,000 on their primary residence resulting from a foreclosure, short sale, or loan modification.

The limit is $250,000 for married/registered domestic partner individuals filing separately.

It applies to debt forgiveness in 2009 through 2012, and mainly brings California into conformity with federal debt relief laws.

“California has been particularly hard hit by the housing crisis,” said State Controller and FTB Chair John Chiang, in a release.

“This is a critical tax change that will help people in our state who already are suffering the loss of their homes.”

Previously, such forgiven mortgage debt would have been considered taxable income in the state of California and reported on tax form 1099-C.

Had it not been amended, many struggling, former homeowners would be without a home and burdened with a huge tax bill to boot.

If you’ve already filed your tax return, but believe you qualify based on the new law, you can file a Form 540X (amended individual income tax return), and subtract the amount of debt relief from income.

“To expedite processing, write 'Mortgage Debt Relief' in red across the top of the amended tax return. Taxpayers must attach a copy of their federal return, including Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), with their state tax return.”

It is estimated that approximately 100,000 residents may benefit from the mortgage debt relief for tax years 2009 to 2012.

For More info you can access the govt. website at www.taxes.ca.gov or feel free to contact Jeffrey Martino Young he is dedicated to providing you with 23 years of industry knowledge as well as the highest level of service and care. With hundreds of loan programs available, he can find the best one for you at the lowest possible rate. How can he do this you ask? Because he is the bank there is no brokering, no middleman, no messing around. The industry's average closing time is over 45 days to close a California first time home buyer mortgage loan. They have FHA direct loan submissions and in house funding which gives them the ability to close your loan on average in 14 - 21 days. The staff are all trained to submit a complete and proper loan package thus they pride themselves in doing it right the first time so that your loan is funded quicker and with greater efficiency and with little if any conditions making your lending experience a pleasure not a pain. You ask How is this done? Again they are the bank "lender." They originate, process, underwrite and fund your loan under one roof in there Orange County, California Corporate office. If you want the loan status you will never get the run around from staff at Essex Mortgage Bank. Next time you are looking for a loan in Sonoma County call them or if you just need to be educated on new loan programs, incentives & down payment assistance they are more then willing to be of assistance they really aim to educate real estate homebuyers and investors. They have a new interactive web site, dedicated to educating and informing those homebuyers with mortgage calculators, Govt. & industry links, glossary of Real Estate terms, knowledgable books and downloadable documents and forms for homesellers wanting to sell there homes on their own, for the home buyers you are not left out they also want to max sure they are legally protected. Due to multiple lenders being fined or shut down by the Feds for not providing their clients with a complete disclosure of the interest rates they were being offered Essex Mortgage Bank has dedicated a complete book that is free of charge as well as a portion of their website being dedicated to "All About Interest Rates" not only are they ethical but they have also taken a proactive approach to make sure every single client knows exactly what they are being offered. These extra steps put Essex Mortgage Bank heads above the rest and proud to refer to others.

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