What does this mean? Well lets say in the past if you sold your house for $100,000 but had paid $200,000 and you were going to make up the shortfall on any loan at the closing - well the state got paid Doc Stamps on the actual new purchase price and that's 70 cents per $100 of purchase so it's $700 on $100,000. But NOW the state has figured out how truly to give you a kick when you're down. IF you work out a short sale with the bank and you sell the house for $100,000 but you OWE $200,000 well then they are considering you paying doc stamps for an over all purchase price of the full amount. In this case the doc stamps would double to $1400. In the case of the short sale I am closing later this month - it added $910 to the seller's costs at a time when they can LEAST afford to pay ANYTHING. And because the state IS unclear we now have closing agents who want to collect the maximum tax even if in three weeks the state were to rule the other way!! 

Even the IRS sees the need to work something out here for folks losing their primary residence and the debt forgiveness act of 2007 takes this issue off the table for most homeowners. But it doesn't satisfy the state of Florida - and being that we're one of the top states in the nation for Foreclosures, Short Sales and Debt Forgiveness the state may be tapping into a new, lucrative and EVER SO PAINFUL new revenue stream. Surprised? I'm not.