Real estate & real living in the Valley of the Sun
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More Short Sales with Law Extension Through 2013?

Check out the article in today’s LA Times here: http://www.latimes.com/business/realestate/la-fi-harney-20120812,0,7914990.story

The Mortgage Forgiveness Debt Relief Act may be extended if the bi-partisan Senate Finance Committee is successful with getting their bill through the Senate and House. The impact of a change like this means that homeowners currently in the process of or considering a short sale for a primary residence could have the tax liability of their forgiven amounts also forgiven, because the legislation amends the tax code. In simple terms: If you owe $300K on your mortgage and as part of a short sale a $100K deficiency (difference between the amount owed & the bank payoff) resulted, that $100K, considered taxable “personal income”, would also be forgiven.

Other rules apply:

  • Property must be a primary residence
  • The loan(s) on the house have to have been obtained to purchase the home (called “purchase money”); no home equity lines or “cash out” refi’s
  • Forgiveness for up to $2M if married, filing jointly, or $1M filing separately

Many who had been considering short sales, but stopped due to time constraints of the laws coming expiration date on 12/31/12, may be in luck if the law is extended.  This is really huge for homeowners looking to avoid the large double-whammy with the subsequent tax bill after completing a short sale.

If you would like me to keep you posted on the progress of this bill, please contact me and I’ll do it!

Have a safe & happy Labor Day weekend!!


Camille Swanson, REALTOR®
Call (602) 810-1750 Direct
(480) 998-0676 Office
camille@camilleswanson.com

6263 N. Scottsdale Rd. #140
Scottsdale, AZ 85250

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"Despite an upward trend in permits, we are unlikely to see affordable supply growing in the short or medium term, unless we start to redefine our thoughts about what is affordable: $300,000, or maybe even $350,000." - The Cromford Report 3/12/18

I've NEVER been a hard sell agent. I give you good info. You use it to make good decisions. If you're buying a home under $300K this spring in Metro Phoenix, carefully ingest this info. Then CALL ME to create a plan. YES- you need a plan. **This is one of the most competitive markets I've seen in years.**
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