When faced with the difficult decision of whether or not to sell your Western MA home with a short sale it can be very stressful and hard to know what the right choice is for you. I have experienced this issue myself as a homeowner and then over again hundredfold with clients. I am working with several homeowners in distress in Western MA right now and they are all struggling in some way with this situation.
Here I share a short (2 minute) podcast about this issue:
If you are a buyer who has a flexible buying schedule then you may be considering purchasing a short sale home because of the savings you can get. The following is a list of the homes for sale with a short sale in Southwick, MA 01077 that are available as of January 17, 2013.
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Buying a home in Southwick, MA? Selling a home in Southwick, MA? I am here to inform and assist you with your real estate needs!
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This from the Realtor Association of Pioneer Valley’s Ben Scranton:
“The law – which was set to expire at the end of 2012 – is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales. Normally, U.S. law decrees that when a lender forgives all or a portion of a borrower’s debt, the forgiven amount is considered taxable income for the borrower. This is known as Cancellation of Debt (COD) Income and must be included in a taxpayer’s gross income. This Act, however, created an exception to this rule under the U.S. Tax Code. The Mortgage Forgiveness Debt Relief Act allows homeowners who received principal reductions or other forms of debt forgiveness to not pay taxes on the amount forgiven. The amount extends up to $2 million of debt forgiven on the homeowner’s principal residence. For homeowner’s to qualify, their debt must have been used to “buy, build, or substantially improve” their principal residence and be secured by that residence. The law, which was passed in 2007 with a 5 year sunset provision, will now be in effect until January 1, 2014.”
For more information on this and other real estate related impacts from the fiscal cliff bill, see this brief from the National Association of Realtors:
If you are a homeowner in the Pioneer Valley of Western Massachusetts who thinks that a short sale might be the answer to your real estate troubles, please give me a call to schedule a consultation. Lesley Lambert, short sale specialist at Park Square Realty 413-575-3611.
You can visit www.shortsaleyourho.me for more information to see if you might be able to avoid foreclosure on your Western MA home with a short sale.
Congress will soon return to session and they will be discussing a housing issue that could affect almost one-quarter of all real estate transactions – the expiration of Mortgage Forgiveness Tax Relief.
Why is this so important?
Homeowners shouldn’t be forced to pay tax on money they’ve already lost with cash they never received – and never will receive.
~More than 20% of current homeowners with a mortgage owe more on their homes than the current fair market value.
~Transactions not completed by year-end could become taxable in 2013, despite a borrower’s reliance on this tax relief.
~The housing market, while recovering, is still fragile enough that this tax relief will be needed in 2013 and possibly beyond.
“Without action before the end of the year, millions of families who hold distressed properties could face a hefty tax bill for trying to modify their mortgage or to seek a short sale through their lender. Even those facing foreclosure will find themselves forced to pay a “foreclosure tax” if Congress doesn’t act. This is because the amount of debt forgiven by the lender would be considered “phantom income” to the borrower even though they never receive any payment from the lender. No taxpayer should be forced to pay tax on money they’ve already lost with cash they never received. We need no new obstacles that might throw the housing recovery off track.”
This quote is from the call to action at the National Association of REALTORS site. They have issued this brief to outline the issue:
If you agree that this tax relief should continue, please take a moment to send that message to your representatives here.
| This may or may not apply to you, but I know you know someone who owes more than their home is worth.
You may not know this, but there are two types of agents in Western MA right now: #1- those that are experts at understanding the complexities of a short sale and… #2- those that DON’T I am a local expert in short sales. I help people move through the hardship of foreclosure and short sales every day. I am committed to helping people in need of this expertise and helping remove this stress from their lives. If you or someone you know is in need of help because you owe more than your home is worth and you may be in danger of foreclosure, please reach out. Option #1- call my FREE 24 hour automated phone line at (413) 642-2313 extension 11. Option #2- click below to get in touch There is help, there are options, I have answers.
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