Time is Running Out, as the Mortgage Debt Relief Act expires.

May 22, 2012, Distressed homeowners in Central Florida will soon no longer be able to take advantage Mortgage Debt Relief Act. The law, enacted in 2007, helps distressed homeowners by relieving them of additional tax responsibility that often accompanies cancelled 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” says Realtor and Distressed Property Expert Paul Antonelli in a recent Bloomberg interview. “In many cases, the additional taxes would equal tens of thousands of dollars. It was like trading one unmanageable debt for another,” Antonelli added.  


The Mortgage Debt Relief Act has provided the opportunity for millions of distressed homeowners in the marketplace to take advantage of short sales without worrying how these actions will affect their future finances. The law is set to expire and time is running short for homeowners with unaffordable mortgage to take advantage of its benefits.


As a Multi-Certified Distressed Property Expert, Paul Antonelli is knowledgeable of the entire scope 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.


Paul Antonelli has developed a free report entitled “Time is Running Out: How the Mortgage Debt Relief Act can save your home” that is accessible from his website, www.PaulAntonelli.com.

FREE Property Owner Seminar

Doors Open at 5:45pm til 8pm on Tuesday MAY 29th  2nd Fl. Hart Memorial Central Library, 211 East Dakin Ave, Downtown Kissimmee 

Today, more than half of all Florida home owners who have a mortgage on their home owe more than its current value. Chances are, you or someone you know is facing the threat of foreclosure. It could be here in Florida or anywhere in the USA, what you need to understand is that you are not alone. Today, 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Paul Antonelli aka That Short Sale Guy working side by side with a leading Foreclosure Defense Attorney can help you avoid foreclosure, your credit can be saved, and your financial future can be salvaged. And usually there is No Out Of Pocket or Up Front cost from you, the homeowner. While a loan modification, if done correctly, can offer short term solutions, unfortunately nearly all of these property owners that apply are unable to qualify. Over 80% of those that do, are back in foreclosure within months.

   If you're considering ways to avoid foreclosure and save your financial future, a short sale might be your answer. Short Sales are decisions you should not make lightly. The process can prove difficult, especially in Central Florida, but it is not without its potential rewards. When you are successful with a short sale of your property, you will avoid massive damage to your credit and avoid foreclosure. In most instances you can wipe away the outstanding balance and future financial obligations.

   As the Central Florida Short Sale Expert, along with my Foreclosure defense attorney and CPA, we can answer just about all of your questions and provide the best short sale service in the industry. I can say that the team has helped hundreds of families avoid foreclosure and short sale their house. Our 98% short sale success rate is the highest in the county. We certainly can do the same for you.

Florida Still Haunted by Shadow Inventory

As one of the hardest hit states during the real estate downturn, Florida often pops up in market reports as having noticeably higher foreclosure rates and a greater number of underwater homes.

Even so, the state is also becoming recognized for the amount of investor interest it is drawing and how quickly some of its markets are climbing out of the housing slump.

For example, the National Association of Realtors recently cited data from Move Inc. showing the top 10 turnaround markets.

Miami was listed as number two and Orlando was number three. In addition, five more Florida areas made it to the 10 ten list due to their increases, with Naples listed as number five, and the last four on the list based in Florida.

Yet, a recent report from Floridarealtors.org stated that while Florida is in a revival period, distressed properties will remain a big part of the real estate market for the state in the next 10 years.

In fact, Florida holds nearly a third of the total shadow inventory nationwide. Shadow inventory in the report is the number of distressed properties (90+ days delinquent, in the foreclosure process, or are REOs) not listed on the market.

“Part of this is due to what happened here during the housing recession. Part of it is due to the tie-up of potential foreclosures in the courts. In any case, the size of the inventory means that it will take years to work off,” the report stated.

And, as long as these distressed properties are so visible in the market, they will continue to be a drag on prices.

However, as realtors and lenders start to more effectively maneuver their way through the landscape of short sales, the less harmful foreclosure alternative is becoming more common in the industry.

“In essence, lenders have discovered that the loss associated with a short sale is less than the loss from taking a property into inventory and absorbing the cost of holding that property and then selling it later. Realtors, for their part, have learned how to market short sales in an efficient fashion,” according to the report.

The report further explained that for most of 2008, both lenders and realtors were confused about the short sale process in terms of the necessary paper work, lender policy toward short sales, and the timeframes for various lenders.

As investor interest, foreclosures and REOs have also lowered, pointing towards less properties entering into the shadow inventory.

According to the report, the flow of new seriously delinquent loans moving into the shadows seems to be offset by the roughly equal number of sales for distressed properties.

While the report projects another decade or so before the state trims off the excess supply of distressed homes, the number of years really “depends upon the revival of the economy and the real estate market, the decisions in the courts, and the shape of regulation that comes out of the current policy debates over the future of Fannie Mae and Freddie Mac.”

Florida Realtor News

Paul Antonelli