debt relief act: What is this Mortgage Forgiveness Debt Relief Act Extension All About? - 01/07/13 12:23 AM
Mortgage Forgiveness Debt Relief Act has officially been EXTENDED to January 1, 2014! ... What does this really mean though???


This is great news for those Home Owners who unfortunately have to do a Short Sale or Foreclosure! Why you ask?  Well, to put it simply, if a homeowner sells their home via Short Sale/Foreclosure for $50,000 but they still owe $100,000 on their Mortgage Note. The Bank has "forgiven" the homeowner the remaining $50,000. The homeowner should have to pay TAX on that waived $50,000 but because of the Mortgage Forgiveness Debt Relief Act of 2007, the homeowner is not … (0 comments)