January
9
January 9th, 2012
by
Kerigan Marketing
So, have you been wondering if it is a good time to do a strategic short sale? A short sale is when you sell your house for less than what is owed on the mortgage...quite a common thing nowdays. A "strategic" short sale is when you can afford to keep making your mortgage payments but you are so upside down on your loan that it makes more sense to just let the house go and start over. 2012 may be the time for you to make your move. In 2013 the amount short on the mortgage will become taxable.
Currently if you sell your home and the proceeds are $100,000 less than the mortgage you can usually have the bank forgive the amount short and there are no tax ramifications (there are conditions that have to be met and every case is a little different). In 2013 due to changes, if you are $100,000 short and you are in the 25% tax bracket...you will owe $25,000 in Federal Taxes. To avoid the tax, you must sell your house in 2012 and you must have documentation of the bank forgiving the deficiency dated prior to 2013.
So if a short sale is something you have been thinking about in the back of your head...you might want to start thinking about it a little harder. You can call me, Chris Charles at 850-866-3720 or any of the highly qualified associates at Beachy Beach Real Estate for more information.
Categories:
Our Blog
Tags: short sale, foreclosure, debt, mortgage, taxes, upside down