I had understood that a short sale had to be completely CLOSED, by 12/31/2012 at midnight in order for forgiven debt to qualify to not be counted as income per the MDRA.
However, someone told me today per their realtor that as long as the house is "under contract" on 12/31/2012 it would still qualify under this law.
I don't believe anything until I've triple-quadruple verified and even then you never know..... I've searched and searched on this and only reference i can find is that it must be closed.
Anyone know if is the contrary and you just need to be "under contract" - which I guess means escrow?
Even if that were true - that's a little scary isn't it? Something can still go awry until it is completely CLOSED - yes?