Fast-Tracking Foreclosures Have Many Homeowners Jumping for a Short Sale Before It’s Too Late



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Are you behind on your mortgage payments? Does it seem that you have no way out and a foreclosure is inevitable? Well before you give up, consider a short sale. In fact, now may be the best time for you to sell your home as a short sale because of what may be soon to come. Banks are filing for foreclosure faster than ever before – and this comes at a time when many homeowners with underwater mortgages have become complacent, expecting more time.

Not only should you put your home on the market now as a short sale to avoid a foreclosure but also, making the move quickly could possibly save you thousands of dollars in taxes.

Right now, and through December 31, 2012 any forgiven debt may be discharged under the Mortgage Debt Forgiveness Relief Act. What this means is that any money you are discharged from paying back that would otherwise be considered as income by the IRS, is exempt from taxation through the program period. But as soon as January 1, 2013 rolls around, unless the program is extended, you would have to pay taxes on that “income”.

So if you are behind on your payments and it seems the bank is getting antsy, take this advice: consider short selling today.

We deal with many of these and would be happy to sit down with you to discuss your options. Contact us today!

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