Home >> Finance >> Tax

Short Sale and Tax Relief (Good Real Estate News)


By: Troy Marsh

Tax Last Friday, December 21, 2007, President Bush signed into law a bill that will temporarily (for 3 years) keep households that negotiate a short sale on their home from having to pay income tax on the difference between the sales price and the owed mortgage amount. This is a great relief for many homeowners who are stuck in adjustable rate mortgages (ARMs) that they can't afford and anyone else who simply can't pay their mortgage because of job loss, etc.

I see this as a very big step in the right direction for the struggling real estate markets across the nation and here in the Midwest in particular. In Ohio we have a large problem with foreclosures and the media has been so kind as to point this out on an almost daily basis. This bill has the potential to have a very positive effect on this problem and there are a couple of big reasons why.

Traditionally, foreclosures are often homes that are beat up and abused by their former owners. This is not a surprising outcome of the process, but it makes the re-sale of the home much harder and usually causes a larger reduction in price. With this bill being signed into law it will make the pre-foreclosure sale (otherwise known as a short sale) an even more attractive option than before. This bill will truly allow the homeowner to put this whole thing behind them and allow them to have the credit benefits as well.

In my experience short sale properties, although not perfect, tend to be in much better condition than many foreclosures because the seller has an interest and benefit in selling the property. A short sale allowing the seller to wash their hands of the matter completely also makes the likelihood and length of vacancy much shorter than a foreclosure, which in Franklin county can take up to 18 months to complete. This also helps the resale value of the neighborhood and helps to keep the homes from bringing down the whole area by adding to crime and becoming an eyesore.

Although short sales are not the type of sales we would like to see in the real estate market for overall prices, they pale in comparison to the effects of the same number of vacant foreclosures taking up to 18 months to sell at auction before they are even marketed to the public.

~Troy Marsh

Troy Marsh Lead Buyer's Specialist & Listing Partner The Gold Key Experts Keller Williams Capital Partners Realty 500 W. Wilson Bridge Rd., Suite 260 Worthington, OH 43085 614.750.2144 - Direct 614.364.7544- Fax TroyRE@gmail.com - Email www.TheGoldKeyExperts.com
Article Source: http://www.ArticleBiz.com
Article link: http://good-article.com/articles/123386-Short-Sale-and-Tax-Relief-(Good-Real-Estate-News).html

You can rate this article:

Similar Articles
Get Your Tax Refund Now
Outsource Tax Preparation Services to Books2Taxes.Com
Section 179 - 4th Qtr Tax Saving Strategy for Small Business
IRA's, SEP's, 401(k)'s, and RRSP's
Are All Tax Returns Created Equally?
Service Tax On Goods Transport Services
3% Itemized Deduction Phaseout Rule
11 Year End Tax Savings Tips
7 Common Overlooked Tax Areas & Savings
Self Employment Registration And The Self Assessment Tax Return Form

Featured links
Top football news
Web hosting with php - Compare the best web hosting plans with unlimited bandwidth, unlimited amount of web space and supported domains.




mobile phones