Willis Ranch homeowners could save $1000’s in taxes.
Since Willis Ranch is one of the areas I focus my real estate practice on; I thought it was important to alert homeowners in Willis Ranch who were thinking about a short sale and the consequences of a federal law that is set to expire at the end of 2012. Willis Ranch homeowners may not have enough time to get their home sold in a short sale situation and beat the expiration date of the Mortgage Forgiveness Act of 2007.
The Mortgage Forgiveness Debt Relief Act was enacted to give tax relief to homeowners selling their principle residences in a short sale or Foreclosure. The act forgives the tax that would be due on the forgiven debt. So, starting January 1st, 2013, any Willis Ranch owner who has their home foreclosed on or sells it in a short sale could find a very unpleasant surprise when tax time comes.
On average it takes approximately 4 months to complete a short sale in Willis Ranch. Some are faster and some are slower depending on the individual circumstances, like the lender, hardship, etc. etc.
Willis Ranch is currently experiencing a pretty robust spurt in sales activity, so getting a contract to buy your house should not be much of a problem. 32 houses have sold in Willis Ranch in March and April of 2012. The days on the market Willis Ranch has been plummeting and is now at 40 days. As you know, Willis Ranch has always been a desirable place to call home and now the secret is out. So the larger problem would be to get the lenders to move quickly enough to beat the expiration date and approve the short sale.
So if any of my Willis Ranch neighbors are thinking about a short sale; it’s time to get off the couch and call me to discuss your situation. C’mon Willis Ranch, pick up the phone and save yourself $1000’s in taxes.
Disclaimer: It should be noted that I am not a tax professional and that you should verify what I say above with your accountant, CPA, or tax attorney. No matter what you ultimately decide, you need to act now.
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