If you blink, you’ll miss a lot in this real estate market. Here’s a recap of some laws and provisions that will expire:
Waiver of the 90 day property flipping rule will expire on 12/31/2011
Summary: Applies to FHA insured home loans. The FHA 90 day property flipping rule: FHA will not insure a loan for any property where title was transferred within 90 days.
2007 Mortgage Forgiveness Debt Relief Act and Debt Cancellation will expire on 12/31/2012. This applies to short sales. If you “short sell” your real property after 2012 be aware that once this act expires any “debt forgiven” can be tax as if you earned it as income.
Summary: “This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately)”