Mortgage Debt Relief News
Big news, folks! The Senate Finance Committee just passed a two-year retroactive extension of mortgage debt relief for households who’ve had mortgage debt forgiven by a lender as part of a loan modification or short sale.
This is the first step in the process, and this legislation still needs to be passed by the full Senate and also by the House.
The Mortgage Forgiveness Debt Relief Act expired at the end of 2013, and unless the full Senate and House approve the extension, borrowers will face the prospect that when they file their tax returns next year, they’ll pay tax on the amount of debt forgiven. Without the Mortgage Debt Relief Act, the tax law provides that such forgiven debt is income.
If the Debt Relief Act is not retroactively extended, some 350,000 households could be affected each year for the next few years, according to National Association of Realtors® president, Steve Brown.
Check out this short, informative video on tax relief from NAR® President Steve Brown:
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