What is a Short Sale?
With the recent changes in the housing market there has been a rise in foreclosures as well as a rise in short sales. In a short sale, a home is sold for less money then what is left to pay off the mortgage. When this happens, a lender may be willing to forgive the remaining debt. However, both of these sales have tax consequences that need to be addressed before the sale of the house. For example, in a short sale, the amount of debt forgiven is taxed as income and will be included in your yearly tax return. The IRS recently posted a Question & Answer bulletin to help address some of these questions. The Q&A can be found on the home page of the IRS: www.irs.gov or directly at: http://www.irs.gov/newsroom/article/0,,id=174034,00.html.
If you are looking to buy and would like a list of Short Sales in areas of interest please fill out the form below.
