Time Running Out For San Diego Foreclosure and Short Sales
Is time running out for San Diego foreclosure opportunities and short sale situations?
There are still many short sales, borrowers in foreclosure, and a good number of homeowners entering the foreclosure process in San Diego. Despite statistics showing a significant decline over the last few years, a San Diego foreclosure deal or short sale is not too hard to find.
Some have neglected to take action, thought values would rise faster or fell prey to real estate agents promising outrageous sales prices while homes continue to sit on the MLS.
The Southern Californian housing market is great, but for those underwater, whether or not in foreclosure yet, time may be running out.
Home loan lenders are speeding up foreclosures nationwide and they are under increasingly less pressure to cut deals.
However, of particular interest, is the coming end of the Mortgage Forgiveness Act extension in a few months.
That means those in foreclosure, or needing to sell their homes as short sales, may not have long to get their home listed, get a buyer lined up, get a short sale approved and close the deal.
Failing to do so could result in huge tax consequences as any amount of the mortgage balance forgiven by lenders and servicers would be considered taxable income. Plus, this could bump many into a much higher tax bracket than they expect.
With little motivation for another extension of the Mortgage Forgiveness Act, the time to act is now. However, those serious about selling a foreclosure or short sale may find it far more prudent to go directly to a cash buyer than to list with a San Diego real estate agent.