Washington DC Metro Homeowners Experiencing Costly Surprises During Tax Season

Vienna, VA, March 15, 2012 --(PR.com)-- According to the Washington, D.C. Metropolitan Area Foreclosure Monitor's Winter 2011 report, the regional foreclosure rate remains high, at 2.5%, with 29,900 loans in foreclosure in December 2010 and 7.6% of mortgages in the metro area 30+ days delinquent – and not surprisingly, many homeowners continue to foreclose on or short sale their properties to escape from financial burdens. But as Marc Cormier of Tania Ivey Real Estate Group explains, many homeowners can be in for an expensive and shocking surprise at tax time. Without proper planning, owners who foreclose on an “underwater” property – or those who refinanced during the housing “bubble" and obtained secured equity lines – can receive huge tax bills later on.

“Going through a foreclosure or short sale is already emotionally and financially damaging. In addition to losing property or property value, however, people who fail to plan may find themselves with an additional, unexpected tax burden down the road,” says Cormier.

A short sale, foreclosure, or abandonment of property can result in under-reporting of “income” gained during the process. For example, if a taxpayer purchased a home at the height of the housing market for $200,000 with 100% financing, then completes a short-sale of the property valued at $100,000 today, the bank may forgive the remaining $100,000 of debt. However, the bank must report this to the IRS, which views the $100,000 that was forgiven as taxable income and leaves the taxpayer with a potential (and unexpected) bill of $31,000 later on.

“We strongly urge anyone who is considering a short sale, property abandonment, or facing foreclosure to speak with a real estate professional before moving forward,” says Cormier. “Working with a Certified Distressed Property Expert and tax accountant now could potentially save you thousands of dollars in the long run.”

Mr. Cormier has created an informational video related to this issue which can be viewed at http://www.youtube.com/watch?v=xse6gn2n22Q&list=UUrpCD2KbegBPmRc8D1CW8lQ&index=5&feature=plcp.

For more information, contact Marc Cormier at cormier64@gmail.com, call (703) 564-4026, or visit www.help2ownahome.com and www.help34.com.