i) Short Sale tax consequences
(a) Seller will be taxed for deficit as income if
(i) Seller’s debt is result of large equity refi and equity wasn’t used to improve property
(ii) If home is not owner occupied, then deficit is taxed as income
(iii) Seller will still be taxed on deficit as income even if the deficit has not been forgiven and is still owed (unless forgiven under DR Act)
i) If short sale deficiency not discharged fully by bank, there can be:
(a) Demand option for up to 6 years – what this means is that the collection agencies who purchase the short sale deficit debt can wait up to 6 years to then come after the borrower and demand repayment of the deficit
~Courtesy of Danielle
Just wanted to wish everyone a very MERRY Christmas! And a Happy New Year’s
Members of NWMLS, which covers 21 counties in Washington, reported 4,987 pending sales of single family homes and condominiums during November. That volume of mutually accepted offers was up about 2 percent from twelve months ago, when brokers logged 4,888 pending sales.
~Northwest Multiple Listing Service 2010
This house MUST SELL! Over 3,000 sq feet, 5 acres, 4 bedrms, 4 bathrms, daylight basement, large 2 bay shop, vaulted great rm, and so much more! Seller says ‘Bring an offer!!’ For more pics, information, or to schedule a showing, call Danielle (me) anytime! 360-483-6490
U.S. home sales and homebuilding also came roaring back to life in October. October pending home sales jumped a record 10.4 percent, lead by a 27 percent jump in the Midwest and a 20 percent gain in the Northeast. October construction spending also grew again in October, rising 0.7 percent, confounding analyst forecasts for a -0.3 percent monthly decline. Private residential construction alone jumped 2.5 percent in October, the biggest increase in private residential construction since April 2010.
~U.S Outlook, Wells Fargo Securities LLC
The National Association of Realtors (NAR) reported that home prices stayed essentially flat in the third quarter compared to the same time frame a year ago. This price stabilization is encouraging, given that sales of existing homes in the period did drop compared to both the prior quarter this year and to the same quarter a year ago. Of course, both those time periods saw buyers rushing in to take advantage of the federal tax credits.
~Inside Lending Newsletter From Liz Standow
There is sometimes a misconception on the part of the public that all credit agreements have a three-day right of rescission. There is no right of rescission for credit extended for the purchase or construction of real property.