We’ve been helping people all around the Northern Virginia area, Maryland and Washington D.C. to avoid foreclosure, to do short sales and one of the questions that I’m often asked is, “What’s the tax considerations of a short sale?” I’m not an accountant and I’ll definitely refer you to an accountant to understand that but there’s something else that you can do. You can just Google the “Mortgage Forgiveness Debt Relief Act of 2007″, which will direct you to the IRS page about short sale debt relief that goes through all the considerations that you may or may not have, and likely you want to have consideration but again you can talk to a tax accountant about that or a CPA.
One of the things that you should know is that at the end of 2012, the way that the law currently stands is that the Mortgage Forgiveness Debt Relief Act of 2007will expire. At the time that you are watching this, that may or may not change but again, we don’t know, I mean, we know the current resources and how the government works and there’s no knowing if people that are putting their properties in the market of short sales at the end of 2012 are going to qualify for this or not. So I suggest to talk to a short sales specialist to see what the current updates are in regards to that law, if it’s still in act or not and if it’s going to be able to help you to avoid any potential taxes. If you have any specific questions, go ahead and give me a call on the number on this web form or fill out the information on the page and I look forward to helping you. Thanks!
How are Short Sales Different Than Bank Owned properties?
A short sale property is being sold by a seller that is upside down on their mortgage, has a valid financial hardship and needs to sell. In other words, it is still owned by the homeowner. The sale of a short sale is contingent on the home owner’s lender approving the sale for a deficiency. A bank owned property – you guessed it – has already been foreclosed on and is owned by the bank.
With the sluggish economy, job layoffs, adjustable rate mortgage payments, declining home values, soaring medical bills and a number of other factors, many people are finding it difficult to keep their homes and could be facing the possibility of losing their homes. A national epidemic is looming. Are your ready? We are in the most challenging real estate market since the Great Depression with no end in sight for the immediate future. The government can only do so much to help victims of this situation. Dan and Traci have helped numerous people in Virginia, Maryland, and Washington DC avoid foreclosure and sell their homes for less than what was owed to the bank.
Are you stressed out about mortgage payments?
Do you think that your only option is a foreclosure?
Are you considering ‘walking away’?
Struggling with a loan modification?
Is a short sale right for you?
How to buy a home after a short sale?
Learn the answers to these questions and more when you read our book, “Should I Short Sale my Home?”
Traci, Maggie, and Dan Rochon 5-5-2011 Shooting Spot for New Book Promotion… “Should I Short Sale My Home?” written Dan and Traci Rochon and Tim and Julie Harris. -Photo By Walt Keel
Prompt Decision for Qualification for Short Sale Act of 2011 was introduced in Congress by U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.). The goal of the bill is to dictate a deadline of 45 days for a lender to respond to a short sale request.
Of course streamlining the short sale process would be a GREAT idea! That being said, considering the past efforts of our government to improve this process, I am skeptical that this bill will be successful if it becomes law. Programs created in the past such as Home Affordable Foreclosure Alternatives Program (HAFA) have done little to improve the process. I hope that Congress considers their past failures when debating this bill. We are going into year 4 of this real estate depression, some stability in regards to improving the short sale process would be helpful to our economy.
