Short Sale Rush Is On
The Short Sale Rush Is On!!
I have been very busy with short sales for a few years now but it looks like it’s going to get even busier for me. The Daily Real Estate News reported today that housing experts are predicting a drastic rise in short sales, with an all-time high expected to be reached this year.
According to RealtyTrac data the number of short sales has already risen 25 percent during the first quarter year-over-year. “We’re seeing a rush already,” Daren Blomquist of RealtyTrac told Reuters. “There was a big increase in the first quarter and we’re expecting that to continue.”
Banks are finally realizing that short sales can be more profitable than letting homes slip into foreclosure, so they are becoming more willing to do them. Some banks are reportedly offering home owners financial incentives to agree to do a short sale.
While this all sounds like good news, and it certainly isn’t bad news, you still need to “qualify” for a short sale. I talk to people all the time that would like to do a short sale even though they can easily afford the payment. They think they would never qualify for a short sale. Sometimes that is the case but quite often there is a way to establish the hardship and get the bank to agree to the short sale. The banks really would rather do a short sale than have to foreclose but they have guidelines they must stay within. I help people determine if they can fall within those guidelines.
Even the Obama administration is pushing for banks to do more short sales, and new government initiatives are no longer including the loan amount forgiven on a short sale to be counted as taxable income under federal law — but that is scheduled to expire at the end of this year, Reuters reports.
I have written separate blogs on the very subject of whether or not Congress will extend the 2007 Mortgage Debt Relief Act. What some people don’t know is that there are other ways to avoid the income tax even if they the law expires.
I don’t have a crystal ball, but what I can see in many areas of the state is the current situation getting worse, which will in turn lead to many more short sales. If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at firstname.lastname@example.org or just visit my website www.upsidedownca.com.
California Attorney and
licensed Real Estate Broker