Undecided on Doing A Short Sale? Good Reason to Do One This Year!

As a housing professional I try to keep up with the latest in the industry especially when it pertains to short sales.  Just the mere mention of those two little words puts fear in most housing professionals heart.  Not only are these transactions difficult and sometimes lengthy but they are full of misconceptions to the average homebuyer.

To add more fuel to the fire the possibility that our current administration may not extend the Mortgage Foregiveness Act of 2007 puts even more pressure on the average short sale that is currently in progress to close....just in case its not extened.  That's right folks, this particular Act allows any amount (follow link above for details) that your mortgage investor "forgives" in a short sale to not have a tax liability.  Contact your CPA to see how this might effect your private finances since everyone has different issues.

Perhaps you are still working on doing a loan modification if so, make sure that a short sale is  part of your back up plan if your loan modification is denied.  By selling your home in a short sale in the majority of cases the difference between what you sell your home for and what you actually owe on your home, otherwise known as the "defiecency" will be forgiven by the investor/own of your mortgage via the mortgage servicer (i.e. company that you pay your mortgage payment to). 

Although short sales can be challenging for everyone that is involved due to the paperwork, rules and length of time that they take to complete they have become much easier for the most part to accomplish and they provide one way for those who owe more than their homes are worth and need to sell because of job relocation, divorce, inability to obtain a loan modification and other lender accepted hardships to get on with their lives.

If you are still thinking of a short sale in the western suburbs of Chicago, especially Aurora, Montgomery, Oswego, Naperville and Yorkville - call me and let's get it started today!  With today's current political climate there are no guarantees that the Mortgage Foregiveness Act will be extended another year although those in our industry are pushing for it.