Homeowners who are facing a short sale or a foreclosure received a little bit of good news last week. A new bill passed in the house of congress, would no longer tax mortgage debt that is forgiven by the lender. In the past the rule was that if your bank agreed to a short sale and the property sold at a loss, the IRS still considered the difference as taxable income. This is a sad time for sellers who have no other options but for buyers this provides opportunities that we have not seen over the last couple of years. For example: The asking price on a two bedroom home in one of San Mateo’s nicer neighborhoods was just reduced from $ 749,000 to $ $627,000 last week. There is no better time to buy but now! 

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