A Significant Short Sale Deadline Will End This Year

Reblogger Sally English
Real Estate Agent with The English Team

Tax relief deadline for short sales explained by my Active Rain Colleague Ed Silva. If you are thinking about a short sale of your home you need to read Ed's comments below.

Original content by Ed Silva REB.0759001

A Significant Short Sale Deadline Will End This Year

For home owners contemplating a short sale, a significant tax relief benefit will expire on Dec 31. This is important as short sales are not quick transactions and not only must time be allowed for the house to get a qualified buyer, but also the time to approve the short sale by the bank must be factored.

The big benefit to short sale sellers is the tax relief exemption. Under this exemption, sellers can exclude as income the amount of debt on their principal residence that is forgiven by their banks. Unless the law is renewed, after Jan 1, 2013, anyone that participates in a short sale in which the lender allows the home to be sold for less than the value of the outstanding mortgage will have to declare the difference as income on their tax returns. The sellers will be given an IRS form 1099 shortly after closing for this ‘phantom income.

Having a bank allow the sellers to get out from under the strain of a home mortgage due to hardship is a positive. Being exempt from any tax obligations is a bonus.

If you are a Central CT homeowner and are having a problem paying your mortgage, I may be able to help you. Call me for a confidential meeting to discuss your situation.

A Significant Short Sale Deadline Will End This Year

 

 

Want to get more information on available homes or condos in the Central Connecticut area? Go to my MLSPulse Home Search site to sign up for ALL Connecticut property listings!

Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!

Visit my Short Sale Help site:    www.ctshortsalessite.com 

Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,  www.edwardsilva.com  203-206-0754

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Comments 3 New Comment

Rainmaker
1,822,739
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Good morning, Sally.....thanks for the reblog....this is very important information for everyone to read.... I'll go to Ed's blog too.

July 19, 2012 05:33 AM
Ambassador
1,433,945
Ed Silva
CDPE, GRI, ABR, Real Estate Agent
RE/MAX Professionals, CT 203-206-0754

Thank you for the considerations. People doing short sales need to get as much help as they can

July 19, 2012 08:23 AM
Rainmaker
294,625
Sally English
Sally English Atlanta Real Estate Agent
The English Team

Yep, I agree with Barbara, great post by Ed.

 

July 19, 2012 12:16 PM
Rainmaker
294,625

Sally English

Sally English Atlanta Real Estate Agent
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Atlanta real estate news from Atlanta real estate agent Sally English. Sally English and the English Team specialize in neighborhoods convenient to EMORY UNIVERSITY, CENTERS FOR DISEASE CONTROL and VA MEDICAL CENTER. Call or text 404-229-2995 SallyEnglish