Is Time Now Short Sale Sellers!!!

» Posted by on Jun 29, 2012 in Short Sale | 0 comments

Time is shortly coming to an end for those homeowners considering a short sale on their home and taking advantage of the Mortgage Forgiveness Act. If you’ve been considering selling your primary home as a short sale, now is the time to sell! Since 2007, people who have sold their primary homes as a short sale have benefited from the “Mortgage Forgiveness Debt Relief Act” which is coming to an end in 2012. Here’s how short sales work: if you owe $500,000 on your house and you sell it for $400,000, the $100,000 “gap” is technically considered taxable income and you are supposed to get a 1099 for that amount of money. This Debt Relief Act has suspended that requirement, giving owners the ability to short sell their homes without having to pay taxes on the deficit. However, it is expiring at the end of 2012. So if you are considering a short sale for your home, do it now so you can benefit from this tax relief act that is quickly coming to an end!