Mortgage Forgiveness Debt Relief Act May Be Extended Through 2013

Short SalesSome good news from Washington today. According to the Daily Herald:

“A bill that would extend the Mortgage Forgiveness Debt Relief Act through 2013 has been passed by the Senate Finance Committee and advanced to the full chamber for possible action next month. The law spares homeowners who receive principal reductions on their home loans from being hit with hefty federal income taxes on amounts forgiven, extends tax write-offs for mortgage insurance premiums, and continues some energy-efficiency tax credits for remodeling and new home construction. The extension could affect millions of homeowners who are underwater, late on their payments and headed for foreclosure, short sales or deeds-in-lieu of foreclosure.”

This is great news for homeowners facing foreclosure or trying to complete a short sale of their primary home.

Photo Licensed from iStockPhoto

The Act has been extended.

About Tom Branch

Tom Branch has written 597 posts in this blog.

Have you ever just met someone, but felt you like you'd known him for years? That's what most people experience with Tom. He has a knack for making folks feel right at home. After 21 years in the Air Force, loyalty and honesty are the foundation of everything Tom does. In addition to being a Texas Real Estate Broker, Tom is a Certified Distressed Property Expert (CDPE) and a Short Sales & Foreclosure Resource (SFR).