Tax Rules Encourage Short Sales Sooner, Rather than Later

I settled on a short sale a couple of days ago. To say that it was a challenge is somewhat of an understatement. We began this sale back in July of 2011. I had the buyer, and I knew the listing agent on the other side very well and I trusted her. She has metal, and is a very calm and organized individual. Me, after 34 years in the business I have been accused of being somewhat of a hot head at times. But I knew my buyer very well and he wanted the house since he grew up in it and he was dying to get in and refurbish the old family homestead. Offer, agreement, appraisal, loss mitigation department, another appraisal, HUD approval, buyer’s mortgage approval, city inspection, sellers lender final approval, HUD settlement sheet 5 days before settlement, communicate with sellers lender in Arizona, last minute change of paperwork, redo settlement sheet, and on and on. Went in at 1030AM, left at 530PM. Buyer’s driver’s license said he was a “Sr” Another addendum. I am ready at this point to “call down the thunder” as Wyatt Earp told Ike Clanton when he had had enough. But the good news is we did settle.
And the good news especially for the sellers is that because they settled this year they are going to avoid any income tax on the debt forgiveness from their lender. I guess there really isn’t any bad news.

Another fine article by Dona DeZube will explain the details of the program. Please read on. If after you read the article and you want to get out there and take a look at some things, click on the link on the right that says “Lehigh Valley Pennsylvania Home Purchase” and email me at samruta@yahoo.com, or give me a call at 610-737-2310. Mortgage rates at 3.75% is what I would almost call free money.