Short sale may be worth the extra tax hit

There are several reasons that pursuing a short sale may be the best option for some homeowners, despite the looming tax hit. A short sale usually occurs when homeowners find themselves upside down on their home (meaning they owe more than it is worth), are getting a divorce, or have to move unexpectedly. The legislation that once protected sellers from paying taxes on the amount forgiven by the lender, The Mortgage Forgiveness Debt Relief Act of 2007, expired last year. This now leaves sellers to pay the taxes on this amount, which can be upwards of thousands of dollars. If you find yourself in this situation, it is important to seek expert advice. Read the full article here:  http://www.sun-sentinel.com/business/fl-ask-real-estate-pro-11042012-20121103,0,791930.story