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Anne Arundel County Short Sales Just Got Less Expensive

Posted on | February 8, 2010 | Written by: Diane Donnelly
Diane Donnelly

Anne Arundel County Short Sales Just Got Less Expensive!

A short sale is when a seller sells a home for less than what is owed to the bank or the mortgage company.  The difference between what the home sells for and what is owed is considered “forgiven debt”.

Anne Arundel County decided to tax short sales on the sales price plus the debt forgiven by the mortgage company or bank.

However, the Maryland Attorney General’s office said the practice wasn’t supported by state law.

Richard Drain, the county controller, said Anne Arundel County will collect recordation tax on the sales price, rather than the sales price plus the forgiven debt by the lender.  This is good news for the buyer! Because recordation taxes are generally split between the buyer and the seller, the amount of cash needed to buy the home has now been reduced a liiiiitle bit.

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Category: Annapolis Real Estate, Anne Arundel County, BRAC, Downpayment and Settlement Costs, FSBO, Financing, First-Time Homebuyers, Foreclosures and Short Sales, General Discussion, News Releases, first time home buyer
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