If you want to sell your home on the Santa Monica short sale market but don’t have it listed yet, you may want to get the process started as soon as possible (but only if you like to save money). The Mortgage Forgiveness Debt Relief Act has been extended until the end of the year, but it requires that your Santa Monica short sale be closed by December 31, 2013. While this is still quite a few months away, it’s important to get your Santa Monica short sale underway because there are obstacles and road blocks that could hold up the process.
While many Santa Monica short sales now only take 3-5 months to close, racing against time still isn’t something that Santa Monica short sale specialists are fond of. It’s better to get the process started as quickly as possible and ensure that your home is closed on before that December 31st deadline.
Realtors say that homeowners interested in selling their home on the Santa Monica short sale market don’t realize just how much money they could save at tax time next year. When you complete a short sale on your home, the amount the bank forgives you is considered taxable income by the IRS. If you owe $175,000 on your home and the bank allows you to sell it for $125,000, you could be liable to pay taxes on the $50,000 difference. Who wants to pay taxes on $50,000 when they’re just trying to get a fresh financial start in their lives?
To learn more about the MFDRA and how you can avoid paying taxes on your Santa Monicashort sale, contact a reputable Santa Monica short sale specialist as soon as possible. The clock is ticking and while you may feel you have plenty of time, you never know what may come about when trying to complete a short sale. Save yourself the headache and worry, as well as hundreds of dollars, and begin the Santa Monica short sale process today so you can take advantage of the MFDRA.