December 31st 2012 "The Mortgage Forgiveness Debt relief Act and Debt Cancellation"
So here is the deal... Prior to 2007 if you found yourself in a position that required to do a short sale and let say for example you owed $400,000 to Bank for a loan on your home.. You do the short sale and the house sells for $200,000.. Well the bank would forgive you for the $200,000 still owed. This is a short-sale.. Well prior to 2007 the IRS would count the $200,000 you were forgiven for as income.. Meaning you would pay taxes on that $200,000.. UGLY..
In 2007 a law was passed that would protect you and not make the forgiven debt taxable ( up to 2 million in deb)t. This is going to expire at the end of this year.. Here is what you need to consider, Shortsales can take a long time, not always but they can take 6 months or more. To qualify for this tax law you must CLOSE escrow before 12/31/2012..If your considering a short-sale , get off the stick and act now...If your upside down on hour house and having trouble making the payment it's time to do something. It could be many many years before your property becomes positive.
HAPPY VALENTINES DAY
Here are some other South Monterey County Housing numbers.
Jan 2012 Previous Month Year over Year
Median Price $168,000 $181,000 $152,000
No. Of Sales 23 47 29
Pending Properties 113 104 135
Sale vs. List Price 96.7% 99.28% 99.4%
Days on Marlet 43 82 46
Inventory of both homes and condos are low, homes were down 26.2% compared to lat Jan.
Prices jumped 5% from last month and 10% from last year.
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