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The Quagmire Of Mortgage Short Sale Transactions Under Current Homeownership Tax Policy In A Time Of Crisis, Tracie R. Porter
The Quagmire Of Mortgage Short Sale Transactions Under Current Homeownership Tax Policy In A Time Of Crisis, Tracie R. Porter
Akron Law Review
The 2007 financial crisis continues to loom over homeowners who own underwater properties. What owning underwater property means for homeowners is that the home’s current market value is less than the mortgage balance, making it impossible to sell or refinance the home without the lender’s approval. The quagmire of financial indebtedness created by current tax laws and policy related to Mortgage Short Sale Transactions, or MSSTs, for homeowners creates an onerous tax liability on taxpayers selling underwater properties. The government and lenders, through various programs implemented to help distressed homeowners with underwater properties, created a belief among homeowners that MSSTs …