Will short sale help be coming to an end?
Earlier in the Great Recession, the federal government passed legislation that helped short sellers. Before this legislation, if someone had to short sell their home they were taxed (at their normal income tax rate) on the debt forgiven by their lender. This was a huge financial burden for people who were already in dire financial straits. With the legislation, home sellers were no longer taxed on the debt forgiveness. The State of California followed suit.
The federal legislation is set to end later this year and would-be short sellers are being encouraged to get going on their short sale. In an article in the San Diego Daily Transcript, industry experts discussed the ramifications of the legislation ending. This includes forced bankruptcy for short sellers as well as a potential increase in foreclosures.
Realtor Associations throughout the country are pushing for the legislation’s renewal and it does seem likely that it will be renewed for at least a year, if not more. Generally, the state government follows the federal government. So, if you are considering a short sale, be aware of the potential end of the legislation but also know that it likely will continue.
Blog Archive2017-04-21 06:42:10
Why are renters staying put?
Homeowner Value Estimates vs. Appraisals
San Diego 8th Hottest Real Estate Market
8 Questions to Ask When Deciding to Rent or Buy
San Diego rent prices vs. home prices
Preparing Your Budget for Buying Your First Home
San Diego home prices dip in February
County Housing Patterns Shifting
Where millennials want to live might surprise you
Misleading Math Behind the Rent vs Buy Calculation
Older Americans Face Challenges Aging in Place
Moving Less in U.S.: American Dream Takes a Hit
Millennials, Housing, and the American Dream
20 Hottest Markets for U.S. Real Estate in January
January, February Prime Months to Purchase a Home
Home Buyer Challenges for 2017
Nation's Priciest House: $250M
Are local housing's price gains real?
Housing Outlook 2017: Eight Predictions
Trump Win Could Usher in Boom for U.S. Housing
Is the Starter Home Coming Back?
Interest rate increased, where will consumers feel
Step Aside HAMP, There's a New Kid in Town
Marketwatch Report November 2016
FHA Loan Limits To Rise in 2017
Click here to see ALL articles.