This is really good news for homeowners who are facing foreclosures and financial difficulties and cannot afford the mortgage payment. Senate has approved the extension of the Mortgage Relief Act of 2007 until 1/1/2014. This will help the housing market to recover quickly.
If this weren’t extended then homeowners would have liable for the tax on the difference between sold price and the mortgage they owe on that house after short sale. Now, with this extension of Mortgage Relief Act of 2007 for another year, the homeowners will avoid the tax on the shortage after short selling their house.
This “fiscal cliff” deal will also help the housing recovery quickly and less foreclosure by homeowners doing short sale.
Banks are also favoring short sale and many big banks have streamlined their short sale process to get the approval quickly rather than waiting for many months.
If you are thinking of doing short sale and your house is in bay area or have any questions, let me know and I would be happy to assist you.
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