"This is going to be a great relief to people who are trying to short sale their property or who are even in foreclosure. It actually means people are not going to have to pay an income tax on the amount of forgiven debt," Dionna Hall, COO with
The Realtors Association of the Palm Beaches said.
Rendfrey now has another 12 months before it expires again, a huge benefit for her and the other 8,500 homeowners with short sales currently on the market in Palm Beach county and the treasure coast.
Real estate agent Bill Richardson said if a short sale has been on your mind, you probably shouldn't wait any longer.
"Do your short sale now. Everyone was starting to get sweaty palms at the end of last year," Richardson said.
The extension also benefits homeowners going through a foreclosure. There are more than 39,000 pending cases in Palm Beach county alone.
If finalized before the end of 2013, most will avoid paying income tax on the amount of money they owed their bank.
The relief has been around since 2007 and there's no guarantee it could be extended again.