In the past couple of weeks I have closed on two short sales. One that the process began in December of 2011. This particular short sale was through Freddie Mac and the process was tedious with many, many investor reviews. Several times over the past few months I was ready to give up; just too frustrating. The banks require a great deal of paperwork, forms completed and an understanding on the part of the seller as to how to correctly fill out these forms. Not all seller’s are created equally. Some keep excellent records and everything was at hand as needed, other’s can’t remember where any of their documents are.
None the less I am glad that I got these two short sales closed because beginning January 1st there will be federal taxation on mortgage debt forgiveness unless Congress acts to extend the current law. We all know how inept Congress is and so it is unpredictable which way this will go.
Doing a short sale takes perseverance……
Borrowers will have to count mortgage relief from lenders as income on their federal tax returns. That means, for example, a borrower would have to pay taxes on a $100,000 reduction in principal owed on aloan, or a $20,000 write-off in the amount owed after a short sale.”
Update: this law was estended through 2013 and the new date is January 1, 2014 for expiration unless Congress renews…since our Government can’t seem o tie their own shoes we shall have to wait and see if they can do anything that is effective.
Do You Need Help with a Short Sale? CONTACT ME or call me at 504-908-2268