Home Owners May Want to Reconsider Short Sale

DAVIE, Fla. - June 11, 2014 - PRLog -- Contact
Scott Kleiman, Law Firm of Kalis & Kleiman
skleiman@kaliskleiman.com
(954) 791–0477
Kim Sailer, BARD Marketing/PR
ksailer@bardmarketing.com

Home Owners May Want to Reconsider Short Sale

Davie, FL – The attorneys at KALIS & KLEIMAN are alerting consumers to the potential problems when considering a short sale. A short sale is a sale of real estate where the owner owes more to the bank (loan, mortgage) than the property is worth.

Since 2007, homeowners whose bank or lender forgave unpaid mortgage debt after a short sale, principal reduction or foreclosure have not been required to count that money as income on their tax returns. Now property owners considering a short sale maybe hit with a hefty income-tax bill from the IRS as Congress has not yet reauthorized the Mortgage Forgiveness Debt Relief Act which expired Dec. 31, 2013.

The Washington Post (http://www.washingtonpost.com/realestate/homeowners-planning-short-sales-confront-a-rift-in-congress-with-major-tax-consequences/2014/06/05/731928fa-ea8a-11e3-b98c-72cef4a00499_story.html) reported that Congress may retroactively extend the debt forgiveness law later this summer or in a post-election lame-duck session; however, that leaves many homeowners in a very difficult situation and with tough decisions to make. Some are opting for bankruptcy rather than risk that the law will not be renewed and to avoid taxation on their forgiven mortgage debt.

According to data from the National Association of Realtors, short sales have plunged from roughly 10% to 12% of home transactions in recent years to between 4% and 5% this spring.

The law firm of Kalis & Kleiman focuses on Commercial and Real Estate Law and Wills, Probate and Trusts. The firm was founded in 1996 and is headquartered in Davie, Florida, at 7320 Griffin Road, Suite 109. Attorneys, Neal Kalis, M. Scott Kleiman, and Aaron Karger can be contacted at 954.791.0477. Additional information about the law Firm of Kalis & Kleiman may be obtained from the firm's website at http://www.kaliskleiman.com.