Here we are heading towards what real estate agents in my part of the country consider "our slow season". The urgency for most buyers to buy a home has slowed down. Many homeowners that are still upside down on their mortgage (i.e. owe more than than their homes are worth) are scared to move out of their homes and start fresh because of the perceived IRS tax penalty if they do a short sale.
Without the retroactive extension of the 2007 Mortgage Foregiveness Act some homeowners may face an IRS tax penalty - paying taxes on "forgiven debt" even though its money they never actually had.
Homeowners that can prove that they were "insolvent" to the IRS at the time of the debt foregiveness can still do a short sale without the tax liability. Check with your CPA or tax accountant to see if you qualify.
According to an LA Times article there is a 50/50 chance that the current Congress will vote to extend the act this year. If you are a homeowner that is currently underwater contact your representative and ask them to push for this to become a reality.
If you are a homeowner thinking of doing a short sale in the Montgomery, Oswego, Yorkville (MOY) area or Aurora/Naperville corridor - don't hesitate to contact me. As an experienced short sale processor (since 2006) I personally handle the processing and go to great lengths to get it approved! Whether your mortgage is owned by Fannie Mae, Freddie Mac, Bank of America, Wells Fargo or Penny Mac or any other investor I will work to make this option available to you instead of having a foreclosure on your credit report.
I continue learning about the latest in short sales by being active in a variety of groups such as short sale superstars and similar short sale specific groups. Contact me now and let's give you a fresh start!
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