Well…in typical Washington fashion…at the 11th hour…Congress extended the Mortgage Debt Forgiveness Act of 2007 for one more year.
This is GREAT news for those folks still wanting to short sale a property. If this had NOT been extended, debt forgiven as a result of a short sale or mortgage modification would have counted as income for tax purposes. For example, if someone owes $300,000 on their mortgage and their lender agrees to accept a $200,000 short sale, $100,000 would have been taxable.
All over the United States, but even more so here in Sunny Arizona, short sales make up a large portion of our market. They are a very important piece to help clear negative equity from the housing market. Some data such as RealtyTrac show short sales make up 22% of all sales.
Additionally, often short sales can cause less long term damage to sellers credit. I have many folks who have a short sale in their past and are now purchasing homes again. In some cases, they can go directly into a new home with no waiting period!
As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me at Adele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL! Go to Metro Phoenix Homes For Sale and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!