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Bondi wants Mortgage Debt Relief Act extended

Real Estate Agent with jsellhomes@live.com

Florida Attorney General Pam Bondi and 43 state attorneys general nationwide are calling on Congress to extend the Mortgage Debt Relief Act, which prevents homeowners from being taxed on the amount of money lenders forgive in a short sale or foreclosure.

The law, passed in 2007, is set to expire on Dec. 31. Unless it's extended, homeowners who complete short sales or foreclosures on primary residences next year and beyond face potentially large tax bills from the Internal Revenue Service.

“We are urging Congress to protect distressed homeowners who qualify for mortgage relief from encountering an unexpected tax bill from the IRS,” Bondi said in a statement. “This tax relief is critical in helping Floridians keep their homes and get back on their feet.”

Many housing analysts expect the law to be extended now that the presidential election is over, but it's unclear when lawmakers would take any action.

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