"Here's encouraging news for financially stressed homeowners:
The Senate Finance Commitee approved a bipartisan bill before summer recess that would extend the Mortgage Forgiveness Debt Relief Act through 2013.
Why is this important?
Several reasons: The debt-relief law spares homeowners who receive principal reductions on their mortgages from being hit with hefty federal income taxes on the amounts forgiven. Without it, millions of owners who go through foreclosures or leave their homes after short sales would experience even more financial stress.
The law also provided relief to thousands of people who have debt balances written off as part of loan-modification agreements and is crucial to the $25 billion federal-state robo-signing settlement with large banks.
However, it is set to expire at the end of December. Some Capitol Hill analysts predicted that, along with a host of other special-interest tax benefits, an extension might have trouble making it through Congress' partisan gauntlet in an election year." - Kenneth Harney
This is good news for Central Ohio homeowners who are having mortgage difficulty or may be facing foreclosure. A short sale may be the best option for those in danger of losing their home, and the extention of this bill will allow for an easier
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