: If You Do Short Sales....Take Heed!

If You Do Short Sales....Take Heed!

If You Do Short Sales....Take Heed!

The Mortgage Debt Forgiveness Act of 2007 is set to expire on December 31, 2012!  Be afraid, be very afraid.
Little Egg Habor Short Sale
If this act expires our clients, the short sellers and loan modifiers, will be liable for taxes on all the debt forgiven.  Just think about negotiating with the bank for loan forgiveness so our clients will not be required to pay further on a home they can't afford due to illness, job loss or other economic factors.  Then they're slapped with an IRS assessment for the unpaid balance of their original loan.

I spoke yesterday with the Director of Government Affairs for the New Jersey Association of REALTORS® (NJAR), and he assured me that NJAR and our National Association of REALTORS® (NAR) are working on this.

I was told NJAR has been working with NAR, and lobbying Congress.  He said both sides of the aisle agree that the Mortgage Debt Forgiveness Act must be extended, and he expects Congress to return to Washington after Christmas, debate reducing spending vs tax increases and then eventually extend everything set to expire for 30 days.

This is an important issue and just a part of the many economic issues facing our clients.  Get involved, contact your representatives in DC!

If you'd like more information on short sales in Little Egg Harbor, or anywhere at the Jersey Shore, contact Little Egg Harbor REALTOR® Laura Giannotta at 609-384-6121. 


Comment balloon 7 commentsLaura Giannotta • December 18 2012 02:49AM


Thank you for  the heads up on this, hopefully this will be extended!!! Good luck with your business in 2012,  E

Posted by Ed & Tracy Oliva, The Oliva Team Arizona Agents (West USA Realty - Arizona) about 6 years ago

Laura: You would think that "phantom" income from folks who have lost their home would be a nonstarter. I am hoping common sense will prevail. In Pa, we have been sending emails and are reminded often that our representatives - Senate and House do pay attention. I guess we will see!

Posted by Anne M. Costello (Weidel Realtors) about 6 years ago

Have written, petitioned....emailed our sphere...it would be beyond comprehension that this would not be extended.....

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) about 6 years ago

Everyone is waiting to see the outcome of this.  It's a really big deal for sure.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) about 6 years ago

This is a big issue. I have faith that the NAR is working diligently to get the act extended. Lets cross our fingers that it works.

Posted by Aaron Smith, Northern Kentucky Agent & Investor (Keller Williams Advisors ) about 6 years ago

I do have mixed feelings on this, but I also know it is good overall.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 6 years ago

Laura, I pretty much feel the same about is as Bill#6, especially for those who came on hard times, have lost jobs or encountered illness.  I'm feeling a little less sympathetic toward those who maxed themselves out with some of those "creative" loans.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) about 6 years ago