photo (1) Many homeowners decide that if they are going to lose their home they might as well try and stall the process to stay in their home as long as they can without paying their mortgage.  While this might seem like a good idea you need to keep in mind that the Mortgage Debt Relief Act of 2007 is set to expire on December 31, 2013.  While it’s possible that it might get extended again for 2014 there is no guarantee.  If you stall your short sale too much, you might find yourself in a very stressful situation come December 2013.  In December 2012, homeowner’s with short sales set to close December 2012 were very concerned while waiting to hear if Congress would extend the Mortgage Debt Relief Act to 2013.

When January 1st, 2013 came around and there was no word that it was going to be extended, homeowner’s whose short sale closings were delayed into January faced the possibility that they might be subject to a large tax liability that they would not have incurred if their short sale closed just a few days earlier.  Do not put yourself into that position. The FHA Rules currently allow for a homeowner to qualify for a new purchase loan three (3) years from the end of a short sale.  Delaying the short sale process will only push back the earliest date that you might be eligible to buy a home again at market rate.  Keep in mind that the short sale process will take three (3) to six (6) months to complete from beginning to end.  Delaying or stalling the process could lead to negative consequences. If your considering starting the short sale process, it’s important to work with a real estate agent that is a short sale certified specialist and has good knowledge of the local real estate market.

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