short sale help: Mortgage Forgiveness Debt Relief Act Extended
- 01/01/13 10:57 AM
J. Philip Faranda shares some great news in his post below on the extension of the mortgage foregiveness debt relief act! The “American Taxpayer Relief Act of 2012’’ passed on a bipartisan 89-9 vote in the middle of the night thereby extending the 2007 Mortgage Foregiveness Debt Relief Act which was due to expire. In short, the bill extends mortgage cancellation relief for home owners and/or sellers who have a portion of their mortgage debt forgiven by their lender. Without the extension, any debt forgiven, typically due to a short sale or foreclosure sale would be taxable. Thus creating an additional financial burden for underwater (5 comments)