Should I short sale my house?

The sad truth is that for tens of thousands of homeowners, their mortgages...and now their homes have become a living nightmare.  Sleepless nights with feelings of  fear, anger, confusion, and often an unconscious feeling of betrayal. I get it!  I really do.  

How do I know those feelings so well?  

Because I was there too!   

There's still time to sell before the Mortgage Forgiveness Debt Relief Act of 2007 expires; December 31, 2012!

My tears of joy became tears of pain in three short years. We took possession of our dream home two days before Christmas, 2005.  We paid $628,000 for a beautiful new home. Although our good faith estimate and actual payment were not even close to similar, we told that we could refinance to a better rate after a few months, "but at least we got our house!"  

By springtime we were over $70,000 upside down and we truly never, ever felt 'at home'.  The writing was on the wall from our first moments in the house. The property continued to decline in value as we watched lawns dry up and people drive away from home they purchased only a year or so earlier.  It's such a sad feeling.  We, with the help of an outstanding Realtor (Macky Hensel) successfully closed our house as a short sale just a couple of years later.  The property sold for $345k, with like models selling for as little as $240k since that time.

So where did that leave us at tax time?  First off, let me clearly express that I am not, nor do I intend to be (nor want to be for that matter) a tax consultant.  I'm a Realtor.  I know real property matters. When the debt relief act passed in 2007, the "Income" or "capital gains" (resulting from the difference between the original amount borrowed and the amount repaid) was excluded from our taxable income.  In our circumstance it was that simple, and as the act was intended to do, we were forgiven for the taxes that prior to the debt relief act we'd have been responsible for.

H.R. 3648 (110th): Mortgage Forgiveness Debt Relief Act of 2007

110th Congress, 2007–2009

To amend the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes.

Introduced:

Sep 25, 2007

Sponsor:

Rep. Charles Rangel [D-NY15]

Status:

Signed by the President

Click here to read hr3648

Where did that leave us just a short time afterward? Remarkably...out of debt; completely. I can't put into words the lightness, the breath, the peace that we felt when we closed.  It wasn't even the debt relief.  It was that we got our lives back.  We got ourselves back. The entire experience was incredibly scary, but so worth it.  If it were not for Macky Hensel we'd have done what so many continue to do...completely bury our heads in the sand and await whatever consequence was coming. We'd have continued to sabotage our future and our family by living in an environment that was truly toxic. Don't wait.  Just don't.

So if I have a single, clear message...it is this.  ACT NOW!  If you are in this position, please drop me a line.  I have an excellent track record in closing short sales.  If you're not sure, drop me a line!  I'll complete a CMA or Comprehensive Market Analysis for you.  This will give you an accurate picture of where you are with regard to today's value (which is changing as I post this) and the balance owed. Just don't wonder any longer.

H.R. 3648, S.B. 931, and S.B. 458 typically apply to the following circumstance:

• First mortgages and any junior mortgage (2nd, 3rd, etc.)
• Primary residences as well as secondary and rental properties.  
• Properties with mortgages up to $2,000,000.  

"But my house already has a trustee sale date (auction date)." Typically, that's not a problem either.  I'm prepared to provide your lender or lenders with a completed short-sale packet in as little as 24 hours. The key is to act now!  Yes, that sounds like an infomercial.  It's not.  We don't have an additional set of steak knives for you if you act now.  What we do have is...just enough time to close most short sales before the Debt Relief Act expires on December 31st, 2012.  With typical close times ranging between 60 and 120 days (time from listing to close varies depending upon a number of circumstances) that means people who stand to benefit from the Debt Relief Act can't "wonder" any longer.  Be wise. Get informed.  Call me, e-mail me, comment, text message...heck send smoke signals, call another agent (but make SURE they're an expert at short sales).  Whatever you do...get informed!

I'll leave you with this "Taste of Wisdom" from an unknown source:

" Life is simple. People complicate it" 

Until next time.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

Click here to e-mail me.

Click here to reach Macky Hensel.


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