WHEW! We Can Breathe Short Sale Indebtedness Forgiveness Extended.

By
Real Estate Broker/Owner with Total Care Realty NCRE# 257455

WHEW!  We Can Breathe Again, Short Sale Indebtedness Forgiveness Extended.

 

For anyone that deals with Short Sales on a daily basis then you are aware of the ability of a seller of a primary residence to apply for a waiver of the tax indebtedness from the short sale of their home.  For a short summary when a person has a short sale on their home because of a financial hardship when the sale is closed the bank has to deal with the difference between what the collected on the sale of the home and what was owed.  This short fall is usually handled by issuing a 1099-C to the homeowner at the end of that year in North Carolina.  For North Carolina is a Non-Deficiency state which means according to North Carolina Statute GS 45-21.38. Deficiency judgements are not allowed .  So the bank issues the 1099-C basically saying that you received that deficiency as income.  

 

BUT, one bright spot in last nights deal was they extended the exclusion from gross income of discharge of qualified principal residence indebtedness.  You can see the bill at the US Congress website.

 

So when you complete your short sale make sure after you get that 1099-C at the end of the year you submit with your taxes IRS Form 982 : Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

 

 

So if you need help with a short sale on your home make sure you are represented by an experienced Short Sale Specialist.

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The Author:

As the Broker-in-Charge, owner and founder of Total Care Realty, LLC, Larry is focused on quality of service. He believes in being on the cutting edge of any product or process that will help market the client’s property or help them find the perfect home. Larry has been consistently recognized as going above and beyond for his clients; he was described as a ‘personal concierge Realtor®’ early on in his Real Estate career. Drawing on his past experience of owning restaurants and working with new technology, innovation is his focus. Larry often says, “we are not afraid to take advantage of new technology as soon as it is available instead of waiting for a corporate office to tell us what we are allowed to do”. This is a benefit of being an independent Real Estate company. As a graduate of The Citadel, instilled in him is the importance of discipline, loyalty, focus, and determination. Marrying those ethics and ideals with the hard driving focus it took to own and manage restaurants for almost twenty years, has given Larry a passion to make sureclient satisfaction is the number one priority. “As your Personal Concierge Realtor® it is our job to help take care of every need of our clients.” Larry Story — Total Care Realty, LLC — 336-327-1841 also at  http://totalcarerealty.net

Copyright© 2010 By Larry Story, All Rights Reserved…

 

 

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 IMPORTANT NOTICE

Mortgage Assistance Relief Services Disclosure

FTC effective January 31, 2011

As a seller you may stop doing business with Total Care Realty at any time.  You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer).  If you reject the offer, you do not have to pay us.  If you accept the offer, our commission will be deducted from the proceeds of the sale their will be no additional fee to you for our services.  Total Care Realty, LLC is not associated with the government, and our service is not approved by the government or your lender.  Even if you accept this offer and use our service, your lender may not agree to change your loan.  If you stop paying your mortgage, you could lose your home and damage your credit rating

 

 "All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental."

 

Comments (3)

Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
Good news for those homeowners currently in the short sale process, or considering it as the new year begins...
Jan 01, 2013 10:30 PM
Robin Dampier REALTOR®
Coldwell Banker King - Hendersonville, NC
Hendersonville & Western NC Real Estate Source

Great information for our short sale folks in North Carolina.  Happy New Year.

Sue of Robin and Sue

Jan 01, 2013 10:58 PM
Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC

Carol,

It is WONDERFUL news for those that really need that help.  

 

Sue,

It is a real sigh of relief.  I had been holding my breath on this one. 

Jan 02, 2013 10:29 PM