Some Valley homeowners could soon get hit with a massive tax bill. And, they are owners already underwater in their homes.
The issue is the Mortgage Forgiveness Debt Relief Act. It's set to expire December 31st unless extended.
Marge Peck, owner of Discover Arizona Real Estate in Mesa, said there needs to be action now or a lot of homeowners will face a lot of financial pain.
She's talking about homeowners going through short sales or foreclosures.
Marc Lemaire is one of those people. His house is going through a short sale. The sale price will be far less than what he owes on the home.
That difference is considered taxable, but the Mortgage Relief Act gives owners a break. It expires at the end of the year.
Unless the act is extended by legislators in Washington, Marc and others would have to pay the taxes on that difference.
"The family is totally freaking out. Having to pay money back to the IRS for monies we never physically had, the family doesn't have it," Marc said.
Peck advises everyone to contact their Congressmen and Senators to try and get the act extended.
See what the IRS says about the Act.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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