The National Association of Realtors just published a very informative article about how banks and the IRS handle loan forgiveness when a home is sold as a short sale. This is important information if you're considering selling your home as a short sale because the future tax implications can be significant. A lender will, on occasion, forgive some portion of a borrower's debt. The general tax rule that applies is that the amount of debt forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but until recently, the borrower was required to pay taxes on the debt forgiven. Click here to read the rest of the article.
Lisa's Blog — Short Sales & Foreclosures
Insight to Real Estate News in Jacksonville & Ponte Vedra, Florida
I just read an article posted on FloridaRealtors.org. This is important information if you're waiting to sell your home and the transaction may be a short sale (or worse), a foreclosure. You may owe federal income taxes in 2013 if you have a short sale or foreclosure after 2012. So, now is the time to make the hard decision: Are you going to walk away from your underwater home?
Uncle Sam is still giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences – as long as the lender officially releases the debt. But on Jan. 1, 2013, the rules change: The amount a lender forgives, either in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes. If a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they're in the 25 percent bracket; $7,500 if in the 15 percent tax section.
To read the entire article click this link.
So, you want to take advantage of this buyer's market and purchase a home that's a short sale. Or, you need to sell your house and realize that your mortgage is more than your house is currently worth. This article has great tips to help you (and your real estate agent) manage expectations and reduce frustration during contract negotiations with the bank.
Roughly 40% or the homes for sale on today's market are short sales and foreclosures! Distressed properties are well known for their value...read more
The Northeast Florida Association of Realtors has published an excellent information guide for home owners who are considering selling their home as a short sale. Check out the guide and talk to your real estate agent before putting your home on the market!
The Northeast Florida Association of Realtors recently published a “Short Sale Seller Advisory”. There’s great information here for people considering selling their real estate in the Jacksonville, Jacksonville Beaches or Ponte Vedra Beach area.
Recently I attended a very informative real estate class, Short Sales & Foreclosures: Protecting Your Clients’ Interests, which was sponsored by the Council of Residential Specialists. I found this class to be full of very helpful information for me as an agent, and also for my clients who are buying or selling distressed properties. Falling behind on your mortgage can be very anxiety producing, and potentially losing your home is devasting. There are some basic things homeowners can do to protect their home from foreclosure.