Short Sale Tax Consequences Looming in San Diego?

Short Sale Tax deadline may affect San Diego County Residents.

Carlsbad-Short-SaleSuffice to say, most people are unaware of the potential tax consequences of a short sale (or foreclosure for that matter). A short sale involves selling a property for less than the amount owed to the lender. Per the tax code, the IRS considers a short sale a “Debt Cancellation”. When a lender cancels or forgives debt, the difference between what was owed and the amount the lender received to cancel or forgive the debt may be taxable to the borrower. For example, Read more »

What is a short sale?

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WHAT EXACTLY IS A SHORT SALE?

Put simply, a short sale is the sale of a home in which the amount owed to the lender(s) is more than the amount that the home can be sold for. Instead of the homeowner having to bring in money to complete the sale, the sale is completed through negotiations with the existing lender(s). The lender(s) agree to accept less than the full amount owed to satisfy the debt and allow it to be paid off “short.”

Put even more simply, a short sale is a real estate transaction that requires an approval from the lender – period. Read more »

Sellers Corner

Find out how much your home is worth and how Magnus Realty Group can help you sell your home. Also, if you are looking into a possibly exploring the short sale of your home, please be advised that we have been trained by former bank loss mitigators in getting short sale cases approved by banks. We currently average a 96%+ short sale success rate for our clients. Learn More

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Whether you are a first time homebuyer or a seasoned veteran Magnus Realty Group has all the resources you need to buy real estate in Carlsbad, Encinitas, Rancho Bernardo, Del Mar, La Jolla, San Diego, Mission Hills, East Lake, Chula Vista and San Diego County.Learn More