The question comes up often; “When should we make the home purchase”? Well, more than 50% of Metro-Atlanta sales are still distressed property. A reminder though. The Mortgage Debt Relief Act of 2007 expires 12/31/2012. After that time, home owners making a short sale cannot exclude income from the discharge of debt on their principal residence unless Congress extends the law, consequently, debt being forgiven on a Short Sale will become taxable. When that happens home owners will have to pay income tax on the debt their lender forgave in the short sale. Short Sales will slow down to say the least.