With the Mortgage Debt Forgiveness act expiring on Jan. 01, 2014, what are sellers to do? We've been attempting to short sell our home since July and just recently, the bank counter offer drove the prospective buyer to back out. We're back at square one. Assuming the act is not extended, manysellers could be in a pickle with potential huge tax bills should they sell. At least that's the impression I get from the research I've done and by speaking to friends, brokers and even a couple of attorneys. Please, I'm just asking for your opinion on a "Plan B". I'm aware of the other options... a DIL or foreclosing. Is it uncommon for a seller to reconsider and look at options to retain the home (with financial situation having improved)? Any and all feedback is appreciated and respected. Thank you very much.
Hi. It will certainly make a difference on sellers actions however, you may want to speak to your accountant or cpa. I am not one, but I have been told that a borrower may file "insolvent" and this may be another option. Good luck.
Hi RJ, thank you for the response. I'm sure I will be consulting someone about this in the near future. It certainly is useful information as on the surface, we would surely fall into the category of "insolvent".
Certainly. If you are in California and need some assistance with this. I would be happy to offer some help. Good luck.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
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