Congress and The House of Representatives both voted to extend the Mortgage Debt Relief Act of 2007 through 2013. This is fantastic news for borrowers who are in the midst of pursuing short sales. Under this Act, borrowers/homeowners who complete a short sale may be exempt from paying income taxes on any debt forgiven by their lender as part of the short sale approval.
"The mortgage industry can breath a sigh of relief with the final fiscal cliff deal bringing back a popular....debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction."
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CLICK HERE to find out if you potentially qualify for this exemption!