Wednesday, 13th of June 2012 at 05:06:18 PMWhen Congress passed the act in 2007, they gave it an expiration date of December 31, 2012. For those of you thinking of short selling, you will want to pay attention to this. If this act does not get extended (and currently nothing is in the works), if you don’t close on your short sale by the end of the year, you will owe taxes on the portion that was written off by your creditor (mortgage company). This can have a very large impact come April next year. If you have two mortgages, your time is running low since those deals can take up to 6 months to resolve.
Getting a buyer for your home won’t be a problem, it’s getting the bank to accept the offer in a timely manner that will be a challenge. If you are not sure if a short sale is in your best interest, give me a call and I’ll help you get started on figuring that out.
You hit the nail on the head – very succinctly. I am telling clients to start their short sale no later than August if they expect to close by year’s end. Funny I just published a post on this exact subject today