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Homes For Sale in Stockton: The Year of the Short Sale

2012 is ramping up to be the year of the short sale in Stockton and San Joaquin County. I talk with homeowners daily that are faced with the choice of giving up everything they have worked for and making monthly payments on their home, even though they love their homes, are deciding to short sale.

Homeowners want to be optimistic and wanted to believe that they could ride out the declining economy, have seen the depletion of savings, retirement accounts and other assets. Many are simply broke and trying to keep their heads above water.  Homeowners are faced with the only way out is either foreclosure or short selling their home. Foreclosures and short sales are dominating the real estate market in Stockton and Lodi California. Underwater homes are an epidemic in the United State: California, Nevada and Florida have been especially hard hit.

The reality that people’s homes are worth much less than the balance of their home loan and what they originally purchased their home for is causing homeowners to reach out to real estate agents in Stockton and Lodi and ask for short sale help. There are options available to avoid foreclosure.

Financial advisors such as Suzie Orman have advised people to build up a six month or a year’s worth of cash reserves to weather a financial crises., but his economic down turn goes on and on without a clear end in sight.  When on the brink of depleting of their cash reserves homeowners are reconsidering their position on keeping their homes. One of the single biggest factors that will cause 2012 to be a year in which many choose short sale is the expiration or the Mortgage Forgiveness Debt Relief Act of 2007 on December 31st 2012.

Homeowners that wait too long to list their home for sale and close escrow before December 31st 2012 may find that they face the loss of a home plus a large IRS tax bill of $15,000 to $25,000 or more added to their financial burdens.  Don’t miss our YouTube Video from Xpress Short Sale TV on the Tax Relief Act of 2007.

 

 

 

 

 

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