Scott Hopper's blog: NEVADA COUNTY REAL ESTATE - DEBT FORGIVENESS ACT

Wednesday, November 28, 2012

NEVADA COUNTY REAL ESTATE - DEBT FORGIVENESS ACT - SHORT SALE

A Short sale is when a seller and the note holder (bank or investor) agree to sell a home for less than the loans value. I have posted a letter which I received today in regards to the expiration of the Debt Forgiveness Act which is scheduled to expire on December 31, 2012.

Click here for the I.R.S.'s explanation of the Act itself.

Attorney Robert Enos of our office was on the phone today with the Office of Representative Charles Rangel (D-NY) concerning the status of the extension of the Debt Forgiveness Act. Rangel is Chairman of the U.S. House Banking and Finance Committee and is directly involved in the legislation to extend the Act as well as in the ongoing negotiations concerning the so-called "Fiscal Cliff " (read more about this in my E-News tomorrow morning).

According to Rangle, there is a 98% chance of approval of extension of the Actat least through 2013. There are many Bills currently in play and there is widespread support for extension. So what is now being decided is what Bill to attach the extension to as a compromise is worked out between the House and Senate versions. He expects that a vote will be taken before Christmas. If not, we would expect a vote somewhere in early 2013 which would be retroactive to January 1st.

Steve Beede

If you are considering a short sale on your home, please contact me as I can help you through the muddied waters.

Throughout 2012 short sales have driven the local market but as the Debit Forgiveness Act's expiration looms Nevada County's for sale inventory has been reduced considerably. Currently there are 325 single family homes on the market while in 1994 there were over 1,400.

There are 29 short sales and 31 REO properties currently being offered in Nevada County. While 12 months ago there were almost 700 homes on the market and a majority of them were short sales and REO properties.

Prices are firming as the desperate sellers are moved out of the market. The bottom line is, we still have no idea what will happen with the Act but one thing is for sure, the market is getting a whole lot stronger as buyers have snatched up many of the lower priced homes in Nevada County!