Update: Short-Sale "Catch-22s" For Sellers (and Buyers)

Good News!

The Washington State Department of Revenue reversed its position this morning to collect real estate excise tax on the difference between the sale price and outstanding mortgage amount on a short-sale. Chalk this victory up to the Washington REALTORS and Escrow and Title Industry among others.

The Department of Revenue will only collect real estate excise tax based on the sale price.

This removes the third "Catch-22" I addressed on my previous blog post.