Regardless of who you voted for, when there is an administration change there are always changes in policies and philosipiess. There certain laws expiring this year that may make a big difference in your ability and/or desire to sell your home, do a loan modfication if needed. Here are a couple of things to really take a look at:
- Loan foregiveness regarding taxes- Currently if you negotiate a successful short sale on your home and lets say you sell it for $300,000 but you owe $400,000 there is a $100,000 difference. In the old days the IRS looked at that $100,000 as a TAXABLE GAIN! Currently (check with your tax person) that is not allowed.
- Lenders coming back later- Currently if a lender accepts a short sale. The deal and any debit is OVER. Lender cannot come back for any monies later but if that law is not extended that is not AUTOMATIC. Yes possibly still be negoiated but not automatic. THIS IS IMPORTANT. Imagine using the example in #1 and all of sudden 5 years from now the OLD lender comes after you for $100,000!
- Loan Modification- Laws right now are favorable lien holders to work with homeowners on doing loan modfications and short sales vs. foreclosing on them and taking properties back. What if that is changed?
If you are in ANY of these categories you need to take a real look at your current situation both short and long term for your family. There are many more things to consider and could be affected. Reach out to us email@example.com or www.elginandpilartalkrealestate.com