What is a short sale? A short sale occurs when the property owner (or their representative) negotiates with their lender to accept less than the full amount due on their mortgage.With so many Sellers having financial problems due to the current mortgage crisis, many “knights in shining armor” have appeared with the message that they can solve the home-owner’s problems, but instead we are seeing an increase in defrauded consumers. So, please be careful out there. Consult a professional tax adviser, attorney, Realtor, or closing agent who is familiar with short sales to assist you in determining if this is the best solution for you or someone you may know.

There is new legislation in place to offer some assistance. President Bush signed the Mortgage Relief Act on Dec. 21, 2007. The Act will allow sellers to sell their home by short sale without being taxed (1099′d) for the deficiency. This Act is retroactive for short sales that occurred from 1/1/07 and will be effective until 12/31/09.

Want more information? We have more tips, supplemental information, and contact numbers available for Buyers wishing to purchase short sale properties and Sellers considering this sale option. Email us at TheExperts@sellinglakecounty.com or call us at 352.267.8278 (our cell) or 352.735.7915 (office).