Facebook Call us: (203) 324 - 4680 Fax: (877) 244 - 4578

2016 is the YEAR to SHORT SALE

The federal  government extended the Mortgage Forgiveness Relief Act of 2007 to Dec. 31, 2016.

What that means to you as an primary residence homeowner doing a short sale is:

  • No income tax consequence!

Yes it is true. In most cases a short sale will cost you $0. Most banks waive the deficiency (the difference between what you owe on your mortgage and what the house sells for). The waived deficiency triggers a 1099. The Mortgage Debt Relief Act extension considers that 1099 moot. Thus, you have no tax consequence from the short sale.

All traditional closing costs are covered in a short sale including: Realtor commission, short sale negotiator fees, attorney and title company closing costs, back real estate taxes, etc.

Typically a homeowner pays $0 when their house sells short,  gets out of their deficiency, and for 2016 will have $0 tax consequence.

Is your house underwater? 2016 is the year to short sale!

Have Us Help With Your Short Sale