Short Sale Relief

Not the most exciting topic, but surely an important one. Short sales, unfortunately, are a big part of our real estate market locally as well as nationally. In brief, a short sale is when a seller owes more on their home than what it is currently worth. Currently lenders are forgiving (writing off) some or all of the deficiency owed by the borrower (home owner). That money is interpreted by the IRS as taxable income on the short sale seller’s income tax. However, a law currently in place voids the forgiven amount as income. Unfortunately, that law expires on December 31st. Some of you reading this are thinking, “Well, my home is paid for so this doesn’t apply to me.” Wrong! No neighborhood in Ponte Vedra Beach is immune to short sales and REO’s, even homes along the Ocean and Intracoastal and in other high – end areas like Harbour Island or Old Ponte Vedra have been effected. A change like this could further bring down the value and desirability of a large part of our market. In term, it affects everyone. If you are looking to short sale your home in the next few months you should really look into this more. I would also suggest consulting with a real estate attorney. It’s always better to be safe than sorry! Below is the link to the article. Have a wonderful day.