In short sales, lenders agree to accept less than what is owed on a mortgage from a homeowner, and this can be a huge relief to many Sarasota County homeowners whose mortgage debt is higher than the home value. Since 2007, Florida home values have dropped an average of 40-50%, leaving many Florida homeowners with financial hardship.
Many homeowners are learning about the benefits of short sales over foreclosure, and this year, in particular, is a good year to short sale your property, since the Mortgage Debt Forgiveness Relief Act (which provides favorable IRS tax treatment to forgiven debt) is set to expire in December.
New Rules Impact Sarasota Short Sales
With the rising popularity of short sales, new rules have been put in place to expedite and streamline short sales. As of June 15, 2012, the Federal Housing Finance Agency is requiring Fannie Mae and Freddie Mac to respond to initial requests for short sales within 30 days of receiving a buyer’s submission and to give final decisions within 60 days. Not only will this help buyers and sellers of short sales, it will also help the real estate market as a whole.
If you or someone you know is suffering financial hardship and might benefit from a short sale, please contact us. At the Troy Funk Team, we have helped many homeowners find relief and recovery via a short sale in Sarasota County, Florida.