California Home Sellers Get Short Sale Tax Break

Recent legislation has made it more attractive for people exploring to refinance their home in Orange County and all of California to consider doing a short sale. Although short sales are not conducted as frequently as in recent years, they will remain a viable option now that the amount forgiven by a lender will not be subject to taxes.

Classified as phantom income, the amount that is forgiven when a property is sold for less money than is owed on the mortgage has been a constant worry for sellers, who fear being stuck with a huge tax bill.

This short sale income tax exemption applies to any residential property that has from one to four units. This is a tremendous relief for the thousands of sellers that are stuck with properties now worth much less than what they sold for.

Need advice on getting a home mortgage or refinancing your present one? Contact Avis Lending today! 

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