Happy Holiday! Part of the fiscal cliff impact would be the tax relief act expiration. I am surprised that no one mentioned this yet. That is, the short sale seller will be charged for full amount of debt forgiveness as their “gift” income for tax purpose.
It is utter madness right now as everyone is rushing to close before Jan 1st 2013 (so am I).
It is interesting to see its impact on the inventory. Because short sales are now bulk of the inventories that come to market at reasonable price range. If the tax relief act is not extended, it would be the (short) sellers’ interest to just wait for foreclosure. And we will be wishing for the days that there is still a month of inventory.
