If you have been contemplating on whether it is worth it for your long-term goals to go ahead and sell your home for less than what it is worth, pay attention to the calendar. This process is called a short sale and it requires lender approval to complete.

The calendar is important because the Mortgage Forgiveness Debt Relief Act expires on New Years Eve.

Simply put, if you owe $400,000 on your mortgage and can only sell your home for $300,000, there's a $100,000 difference. Today homeowners do not have to pay taxes on this $100,000 because of the Act. If the Act is not extended or a new one put in it's place, on January 1, 2013 homeowners will owe taxes on that $100,000.

Watch the video.

Note: Always consult with a real estate attorney and accountant that understands short sales. I can provide you with contacts.