A Mission Viejo short sale is the sale of a home when sales proceeds are not sufficient to pay off the existing loan(s) but the lender(s) accepts a discounted payoff to fully satisfy the loan. A lender would usually rather negotiate a settlement today with a Short Sale than be forced to incur the expense of a foreclosure later. Consider this: the lender wants to limit their losses in the future just as badly as you do. At the same time, the existing lender pays for all sales fees. This includes sales costs, commissions, escrow, title and any repair costs. The loan shows as “paid” with a zero balance on your credit and you avoid foreclosure. A Mission Viejo short sale realtor can offer expert advice when considering a short sale.
On December 20, 2007 President Bush Signed H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. The law applies to primary residences only and takes effect from January 1, 2007 through December 31, 2012. It provides relief to home owners by shielding them from the additional burden of potential federal income tax on any amount written off or forgiven by their lender in case of foreclosure or short sale. Remember, this act applies towards federal income taxes, state income taxes may apply. Consultation with an experienced tax professional to see how the law applies in your circumstance is strongly advisable. If you are considering a short sale, consider working with an experienced Mission Viejo short sale agent.
About Mission Viejo: Mission Viejo boasts a beautiful climate with warm summers and cool–but far from frigid–winters. The average temperature in the summer will range from the 70s to the 80s Fahrenheit (August, the hottest month, averages 83 degrees). Meanwhile, winter temperatures hover in the 50s, dipping into the 40s (December, the coldest month in Mission Viejo, averages 47 degrees). All in all, the temperatures allow people in Mission Viejo to enjoy their picturesque surroundings all year long.