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Mortgage Cancellation Tax Relief Act

By
Real Estate Agent with ERA Queen City Realty

The Mortgage Cancellation Tax Relief Act  - H.R. 1876 was introduced by Congressman Robert Andrews, a Democrat from New Jersey. Currently the bill is being cosponsored by 17 other members of congress, with equal support from both sides. The goal of this legislation is to do away with current laws that require individuals to pay an income tax, when a portion of their mortgage loan is forgiven or when there is a short sale due to a foreclosure.

On April 17, 2007, the bill was referred to the House Committee of Way and Means. I am of the opinion that most people would see this taxation as an unnecessary burden to an otherwise overburden individual or family. If you concur, then let your congressional representative know that you support this legislation.

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Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
William, it seems like kicking a person when they're down, to tax someone that lost their home due to foreclosure.  I'm glad that someone is addressing the injustice of that.
Jul 29, 2007 12:34 AM
Jackie Moye
Bob Parks Realty - Franklin, TN
CSP
I wonder if NAR will get behind this? I hope they do as the tax adds insult to injury
Jul 29, 2007 03:25 AM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

William & Jackie,

NAR is a tremendous supporter of this legislation and they are working to help see its ratification. Thanks for stopping by.

 

Jul 29, 2007 03:34 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I would love to see them do away with the 1099! So many people are destroyed even more when a predatory we buy home persons says they can save them from foreclosure and then six months later they get a 1099 and don't understand why they owe so much to the IRS.

Jul 30, 2007 04:12 AM
Anonymous
Bob

After being served papers indicating foreclosure proceedings have begun, one of the options stated by bank was a short sale that would have to be approved.  Since the amount owed is more than the current market value, this appeared to be a viable option.  After just having learned that I would received a 1099 for "income" would put me and my family in further distress.  The motive of short sale should be to prevent foreclosure and bankruptcy and move forward without being further taxed.  This is NOT income.  I hope there is some priority placed on this legislation as I have learned there are hundreds of families that are daily entering foreclosure due to the subprime loans.

Aug 06, 2007 06:52 AM
#5
Linda Box Taylor
Castle Connections Realty - Plano, TX
Your Plano, TX Realtor
William, I think this is very important legislation that will help those property owners in need most.  I know NAR is a big supporter but I think it is almost important that our representatives hear from us individually.  So, everyone start emailing them and telling them about your support for this bill.  If you don't know who your rep is then use this link:  http://www.govtrack.us/congress/findyourreps.xpd
Aug 09, 2007 02:17 AM
Chrissy Harrison
Referral Only Realty - Longmont, CO
Bill - thank you for the helpful information. This is logical and will help many American families.
Aug 13, 2007 05:24 AM
Anonymous
Jesus R Flores
Is there any way to expedite the process for consideration of this bill?
Aug 14, 2007 06:43 AM
#8