Still good to buy short sales. Tax Issue Affecting Short Sale transactions put on hold!

Montgomery County
Legislative Update
Many buyers are interested in buying short sales.
According to mls, in both Montgomery County and PG County there are over 500 homes listed as being short sales: 28 of these homes are in 20902;3 in 20854. There are 180 homes listed in DC as Short sales and 118 homes listed as shor sales in Howard County. In Fairfax and Fairfax City, Virginia ther are 347 homes listed as short sale sales. In Arlington there are 37 home listed as short sales.
For more information about short sales in the area you are living in and or looking to buy in as well as sell in,let me know. I'm here to help!




January 13, 2010




Legislative Success - Tax Issue Affecting Short Sale

Transactions Put on Hold!!


On Tuesday, January 12, GCAAR was informed that the County's Department of Finance Transfer Office has decided to hold off on their recent position regarding recordation and transfer taxes on short sales until further review. Their position is that short sales should be taxed on the unpaid principal balance of the mortgage as if the excess debt over and above the sale price is being waived/cancelled. Below is the new memo released from the Department:



Dear Clients of the Montgomery County Transfer Office:



We have decided to initiate further review of the Short Sale issue.



Until our review is complete, you may continue to submit Short Sales for processing (at the contract purchase price) as in the past.



Note: If, after further review, the final conclusion is that "consideration" may exceed the Short Sale purchase price, we will give you ample advance notice of this result and the appropriate procedure for calculating "consideration".



Thank you,



Tim Jones

Tax Operations Manager



GCAAR's government affairs staff is working diligently on this issue and will keep members informed as we receive any new information. If you have any questions, please contact Meredith Weisel, VP of Public Policy for Maryland at mweisel@gcaar.com.









GCAAR
8757 Georgia Avenue, Suite 600
Silver Spring, Maryland 20910


This is great news for buyers who may have started to hesitate to in buying short sales and for sellers in short sale situations,who were wondering if they would have a harder time selling their homes.

Adam
adambashein@mris.com
www.basheinhomes.info
301-943-4370

Adam Bashein
Licensed in MD & DC

Weichert Realtors
7821 Tuckerman Lane
Potomac,MD 20854
301-718-4100 ext.132

The labor of short sales,foreclosures and third party approvals

One of the first things I discuss in my buyer consultation is that you can potentially be waiting for weeks or months for an approval by a lender (and sometimes two lenders)if the home of your dreams is a short sale,foreclosure or a third party approval. One of my buyers, who wants to live in Baltimore or Columbia is experiencing this hurry up and wait to hear from the bank.

In addition to the stress of wondering whether the bank is going to approve their offer,counter the offer or reject the offer, my clients are,G-d willing,expecting a baby in mid to late September and their goal is to be in a home or at least have a fully ratified contract before the baby arrives.
So, yesterday when I talked with my buyers they told me that they want to start looking at homes again that aren't short sales or foreclosures . And, they are willing to increase their budget if necessary in order to find a home that meets their criteria. Fortunately I found some homes in the same price range we have been looking at and we'll visit them next week. Hopefully they will fall in love with one of the homes and we can have a quick,smooth settlement before the baby arrives.