UNDERWATER HOMEOWNERS IN SHORT SALES MAY FACE HEFTY TAX IF CLOSING DOES NOT TAKE PLACE BEFORE DECEMBER 31, 2012
Most homeowners with underwater properties know far too well the advantages of a short sale. Regardless of whether there is one mortgage or two, regardless of how much you owe the bank or the condition of the property, a short sale of a primary residence, if negotiated efficiently, will almost always result in a complete waiver of the mortgage balance and money back called “incentives” to the homeowner/borrower, in some cases up to $35,000.00.
What most homeowners do not know is that this little known law that has protected them from having the bank go after them for the difference is set to expire on December 31, 2012. That’ right, three months from now. Unless Congress grants an extension of the law created in 2007 to help underwater homeowners, if your short sale closing does not take place by December 31, 2012, there is no guarantee that a short sale will wipe out the mortgage balance. This may result in sellers facing daunting tax bills.
For example, a seller that sells in a short sale and their lender wipes away $100,000 in the mortgage balance, the homeowner/seller could end up owing the IRS more than $25,000 in taxes. The only way to avoid this would be to file for bankruptcy.
While chances are good that the law will be extended, the best way a homeowner who is planning a short sale can protect himself/herself is to hire a trained expert in the field of short sale and real estate to make sure that the short sale is handled with utmost speed and professionalism, to guarantee a speedy closing, prior to December 31, 2012.
At The Law Offices of Jacqueline A. Salcines, PA, we have been handling short sales since the term was created and have uncovered and discovered nearly every lender and short sale nuance, to offer our clients the benefit of our expertise. We not only move short sales along quickly, but once approved, you reap the benefit of having an ATTORNEY/ACCOUNTANT review the approval terms to make sure the mortgage balance deficiency is written off, money incentives due you are paid by your lender and the short sale is a success.
While realtors are certainly equipped to handle short sale negotiations, most of the time lender requests for documents are lengthy and time consuming, as well as time sensitive. Realtors may not be timely in their responses, as they are out making the most of their listings and handling outside business.
We take the load off of realtors and sellers, and handle the short sale closing transaction from beginning to end. At the Law Offices of Jacqueline A. Salcines, P.A., we are there for sellers and realtors alike, every step of the way to make sure that your closing is a success.
Call me, Jacqueline A. Salcines, to find out how we can help sellers, borrowers and realtors alike to get those short sales CLOSED before December 31, 2012.