Short sales down sharply, bigger declines to come

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Short sales are making up a much smaller percentage of sales in markets that got slammed during the downturn, including Las Vegas, Phoenix and Orlando, according to data compiled by Tom Lawler for Calculated Risk.

Calculated Risk author Bill McBride expects even bigger declines next year, as Congress looks unlikely to extend the Mortgage Debt Relief Act, which allowed distressed homeowners to avoid the burden of reporting canceled debt on the sale of a principal home as income to the IRS.

If Congress doesn’t act, the Mortgage Debt Relief Act will expire Dec. 31, so McBride says to “complete all short sales by the end of this year!” Source: calculatedriskblog.com