Selling via Short Sale Takes a Dedicated Seller

Lisa Loper of the Scott Loper Team talks about the demands placed on a short sale seller.

Sounds easy to sell a home via a short sale?  Think again.  When a bank approves a short sale, they want to be assured that the seller is not able to pay the debt owed and forgiving the outstanding debt will be a better business decision than foreclosing on the property.  The bank will do whatever makes more economic sense to them. The seller of a short sale will walk away with bad credit instead of the really bad credit associated with a foreclosure.  Typically the seller can also get the deficiency waived by the bank but this is not always the case with a short sale.  A seller may need to file for bankruptcy after a short sale or foreclosure in order to get the deficiency judgment waived.  In rare cases, a bank may give the seller a …

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What Mortgage Forgiveness Tax Relief Means to the Real Estate Recovery

As taxes are being weighed in Congress, tax relief on mortgage forgiveness is set to expire at the end of the year

According to the IRS, if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be considered taxable income. The Mortgage Debt Relief Act of 2007 was enacted to allow taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a short sale or a foreclosure, qualifies for the relief.  This Act is set to expire at the end of 2012. As home prices spiraled downward and millions of homeowners became underwater on their mortgages (owing more than their homes were worth) during the housing crisis, this measure was needed so consumers who were already financially devastated could pick up …

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