Struggling homeowners who are considering a loan modification, short sale or foreclosure will see another year of tax relief!
The “fiscal cliff bill” passed by Congress on January 1, 2013 helped start the new year out with some good news for many borrowers. It included a provision to extend the Mortgage Forgiveness Debt Relief Act that was scheduled to expire December 31, 2012.
This act excludes borrowers from paying taxes on debt that is forgiven in the event of a loan modification, short sale or foreclosure.
Over 26,000 California Real Estate agents & 41 state attorneys generals sent messages to Congress to bring attention to the need to continue this Mortgage Forgiveness Relief Act.