There is some great news for sellers contemplating a Short Sale on their home. As part of the “fiscal cliff” negotiations, Congress included the extension of the Mortgage Forgiveness Debt Relief Act for another year. This measure continues to exempt from taxation mortgage debt that is forgiven when a homeowner sells their home via a Short Sale.
There was an enormous amount of uncertainty whether this act was going to be extended by Congress. Now that this major issue is resolved, it will allow homeowners the ability to plan their next course of action if they are saddled with an underwater asset. Using a Short Sale as a financial tool makes a tremendous amount of sense in many situations.
If you would like to discuss the positives and negatives associated with the Short Sale process, please give me a call at anytime at 858-832-8835. I have personally negotiated and closed over 75 short sales, so I have dealt with almost every lender and situation that can be encountered.