What Is a Short Sale?
A Short Sale occurs when real property is sold and the lender agrees to accept less than the amount owed on the mortgage and to release the lien that secures the debt. A Short Sale can often be used as an alternative to foreclosure. Contact experienced real estate lawyer Elizabeth A. Edwards
The Mortgage Forgiveness Debt Relief Act
If you owe a debt to someone and they cancel or forgive that debt, the cancelled amount may be taxable to you.
Exclude Income
 |
The Mortgage Forgiveness Debt Relief Act of 2007 generally allows you to exclude income from the discharge of debt on your principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a Short Sale or foreclosure qualifies for the relief. This provision applies to debt forgiven in calendar year 2007 -2012. Up to $2 million in forgiven debt is eligible for this exclusion ($1 million if married filing separately). The discharge must be directly related to a decline in your home's value or in your financial condition.
Complex Transaction
Short Sales must be approved by the lender. Just because you owe more than your home may be worth doesn't mean the transaction will qualify as a Short Sale. The Short Sale process is complex. You need advice from a knowledgeable real estate attorney. Experienced real estate lawyer Elizabeth A. Edwards can provide the guidance you need in navigating the often treacherous waters of Short Sales and foreclosures. Short Sale attorney Elizabeth A. Edwards can help you:
Determine if a Short Sale is a realistic and practical approach for you
 |
- Understand the Short Sale process and the deadlines involved
- Negotiate with all parties including your lender, your lender's attorney, your Buyer, your Buyer's attorney, asset managers and others
- Prepare contracts
- Represent you in a foreclosure proceeding, if applicable
- Prepare the Short Sale package for the lender's approval
- Prepare closing documents
- Attend the closing as your representative, disburse funds as appropriate, obtain and record necessary releases
Please contact real estate lawyer Elizabeth A. Edwards for additional information or to schedule an appointment.
