‘Short’ Sale May Have Tax Consequences
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I read with great interest your headline article titled “Strapped Homeowners Sell ‘Short’,” (Dec. 19) a very well researched and written article, although I would like to add a little.
The last two paragraphs state that homeowners who have refinanced should be aware of the tax consequences of a short payoff. In fact, any situation where the lender is not paid in full (foreclosure or paid as agreed) the seller owes taxes for the theoretical gain. I only point this out because readers may decide that they can escape payment of taxes and then have their plans ruined later.
Obviously the best thing in such a situation would be to go for the short pay and save one’s credit. But how this is done can be critical. Thus anyone in a short pay situation should contact a good real estate attorney and then a good real estate broker who can advise them of all their options and save them from some very dangerous people who could take advantage of a sad situation.
SCOTT ROBINSON
Associate Broker
White House Properties
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