What are the consequences if you try to short sale a home in California but it does not close before the Mortgage Debt Relief Law expires in December?
It means if they don't extend it, and I doubt they will, you may be taxed both state and federal for the difference.
It is my opinion,....
lets say you bought a home for 500,000
lets say you sell the home for 250,000 and the closing costs were 50,000 Just using round numbers.
you will be facing taxes of 300,000 of income for 2013.
However I am not a tax person and you should verify this info with a CPA.
Time is ticking.
Makes you realize short sales and foreclosures should stop quite a bit next year.
The taxes will kill you if you foreclose or short sell in 2013
The IRS will never stop coming for you and the IRS can not be filed bankruptcy on.
they collect either way sooner or later.
Don't forget to vote best answer for those who give the best answer.
Harold Sharpe - Broker
So Cal Homes
California Department of Real Estate Broker License # 01312992... more
Good answers below. There seems to be no connection between the condition of the home and the time it takes to process a short sale. It appears to depend on the workload and skill of the bank employee working on the file.... more
No one can really tell you whether or not you should keep making your mortgage payments. However, majority of the time we find that homeowners are not able to make the payments and are in default on their mortgage during the short sale. Hard to say when short sales are not approved-- it really depends. Feel free to contact me.
Sara Mehrpouyan CDPE
Short sale & Foreclosure Specialist
Dre License #01712757