California Governor Arnold Schwarzenegger is poised to sign into law SB 401, legislation that will waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. The new legislation is expected to benefit about 34,000 California taxpayers.
In a report Friday, the L.A. Times said Schwarzenegger would sign the bill in time for taxpayers to take advantage of the benefits before the April 15 deadline to file tax returns.
The legislation also contains about $60 million in tax incentives to encourage corporate energy efficiency.
The relief for Californians affected by the housing crises couldn't come at a better time. In February, foreclosure experts at Heavy Hammer Inc. forecast rising foreclosure rates throughout 2010.
Hopefully, legislators in Washington, D.C., are ready to recommit to addressing employment, housing and the other underlying issues at the heart of the current recession so we can begin our recovery.
For the latest real estate foreclosure news and information, visit www.USHUD.com, America's only free foreclosure resource.
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