Have you heard the terms: short sale, deed-in lieu or modification? One of the biggest struggles for homeowners facing financial difficulties, is understanding their options. I've been trained to explain these options and strategies to homeowners so that a good decision can be made for the future. If you or anyone you know are having difficulty paying the mortgage, give me a call. I am here to assist you.
What Is A Short Sale?
- A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts, and whereby the lien holders agree to release their lien on the real estate and accept less than the amount that was owed. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
- On January 3, 2013 President Obama signed the American Taxpayer Relief Act which extends the deadline of the Mortgage Debt Relief Act to December 31, 2013. If the Mortgage Debt Relief had expired, any amount of cancelled debt would have been taxable income for IRS purposes. The Mortgage Debt Relief Act was set to expire on December 31, 2012. With this new extension, homeowners now have less than 12 months to take advantage of this tax relief. And while that may seem like a long time, keep in mind that short sales can take time to complete.
If you have any questions, please feel free to contact me.