Currently, and through the end of 2012, if you sell a Phoenix property as a Phoenix Short Sale and it meets the criteria in the Mortgage Debt Relief Forgiveness Act, you won't suffer any Income Tax consequences.
Close escrow on or after January 1, 2013 and the way things stand right now, you will be liable for income tax on the difference between what was owed to the lender(s) and what they received from the Short Sale.
So - what if you have a $300,000 mortgage and your property is now valued at $150,000. That type of drop in value in the Phoenix area has been the norm - not the exception.
You are able to make your payments, and have no plans to move.
How long before you break even?
What if for some reason unknown to you now, you have to sell in 2013 or beyond?
What will your property be worth then?
What will your income tax liability be to Uncle Sam??
We have tools you can use to find the answers to these questions and more at:
If you are considering a Short Sale in the Phoenix metro area, we encourage you to talk with us before you list your Short Sale. If you do pursue a Phoenix Short Sale and list with Haven Express, here is an example of the Short Sale experience you can look forward to:
If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty
Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty