Are you considering a short sale of your home? Finding it hard to take the first step? Not sure what the first step is?
I understand. However, there are a couple of reasons why you need to act NOW.
When you sell your home short the bank essentially “forgives”a portion of the debt you owed to them. The IRS considers this forgiven debt as income and they want to tax that income. (I know this sounds crazy, but it is true).
In 2007 Congress passed the Mortgage Forgiveness Debt Relief Act- the IRS would not collect tax on your forgiven debt. This Act expires at the end of 2012.
What does this mean?
Short sales take several months to complete. In addition, I think last minute hopefuls will overwhelm the system toward the end of the year. Many will simply not make the deadline.
The good news is that today’s conditions are perfect for selling well priced homes. If you can get your home on the market in the near future you have the best possible chance of making the deadline and saving yourself thousands and thousands of tax dollars.
Where will I GO?
This process will take several months to complete. That is several months to find alternate housing and move.
Where do I start?
I am so glad you asked. At the top of this post is my updated ShortSale 101 presentation. I walk you through the steps and guide you through the pitfalls of a short sale. Please view it and share it with others!