Breaking News- The Mortgage Debt Relief Act will be extended through 2015!
The bill has passed the house and expected to pass the senate which means it will be retroactive for any short sale seller of their primary residence in 2014 and extended through 2015! If you are considering short sale as an option but worried about the tax benefits this extension is crucial. Call us today to find out more details and how this impacts you!
Jennifer Young Homes
Keller Williams Realty
For more information check this article out on realtor.org
Why is it called a short sale?
The name “Short Sale” is definitely misleading especially to the general public who tend to take it as being a fast sale on a home. This can be confusing and frustrating as many people find out their “short sales” do not in fact take a “short” amount of time.
The term “short sale” comes from the seller coming up “short” on their loan. The seller is trying to avoid foreclosure, so is therefore trying to make a deal with their bank. Their home is now worth less than they owe on it. They essentially negotiate with the bank to “shorten” their loan and accept a lesser amount of money to pay it off.
A short sale can take anywhere from 30 days to a couple years to complete. The seller has to go back and forth between the bank to get the bank to accept less money. This is an in depth process and can take a while especially if the agents involved do not keep close tabs on the bank and other parties involved.
