Mortgage Forgiveness Debt Relief Act was extended.
Good news for a homeowner who were worried about paying tax after a short sale, if the short sale was not complete until December 31, 2012. Fortunately, the Congress has extended the Mortgage Forgiveness Debt Relief Act for another year.
The extension of this new law will protect distress homeowner from paying huge tax bills on the amount of money forgive by the bank as a result of a short sale. I have three short sales in San Francisco and one in San Mateo waiting for bank approval.
Most for of delays occur by the interaction of the holidays and some due to buyers’ delays obtaining loan approval.
I wrote a letter our Congresswoman, Jackie Speier. She replayed to my letter saying that she was very confident the Congress will extend the Mortgage Forgiveness Debt Relief Act. I forwarded that letter to homeowners who were waiting for short sale approval from their banks, so they knew something was being done to get the Mortgage Forgiveness Debt Relief Act extended.