The Best Time to Short Sale a House
The reason being is because the Mortgage Forgiveness Debt Relief Act will expire at the end of the year. It was designed to help home owners sell their house without remaining in debt, by exempting the sale from taxation – (under tax code, borrowed money doesn’t need to be reported as income because you have an obligation to repay. But if the lender cancels what you owe, the IRS requires you to report the debt as income because the duty to repay no longer exists).
If you decide to short sale your property after December 31, you’ll have to pay a hefty income tax, which could add more stress to your financial situation. So, if you’ve been on the fence in figuring out how to handle your mortgage payments, a short sale might be the best option at the moment.
There are other benefits to short selling your house and avoiding foreclosure:
|Benefits of a Short Sale||Negatives of a Foreclosure|
Take it from a fellow short seller: “A short sale provides peace of mind. If you’re in foreclosure, you don’t know when they’re ultimately going to take the place away from you.”
To review your circumstances and start a short sale now, contact a local agent at Keller Williams Realty. Their trained and certified agents will help you put your house on the market for the right price.