A side note to the legislation passed last night to stay the “fiscal cliff” was the inclusion of an extension of the Tax Forgiveness for short sales. This means home owners who must sell their homes short will not be taxed on the portion of the debt that is forgiven by their lenders. I am only speaking of tax forgiveness from the IRS.
Some states have laws that will not tax the debt forgiveness but be sure to check with your tax advisor, CPA or tax lawyer to see how the laws affect your particular situation.
Short sales have been decreasing in San Diego. The combination of a stronger employment market and increased home values mean that some home owners are no longer underwater and are more confident about their jobs.
Selling your home short has very particular requirements that must be met so if you are in distress with your home, give me a call so we can discuss your options.