Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Mortgage Debt Forgiveness Relief Act Expires December 31, 2012

With the election just around the corner, many homeowners will eagerly await a tax decision that will directly affect them. Many distressed homeowners continue to wonder if they will have the ability to short sell their home, obtain a loan modification with principle write-down without having to owe the federal (and state government) taxes on the amount forgiven.

The lame duck congress will need to make tough decisions that will affect millions of homeowners when they reconvene November 13. Come December 31, 2012 the Mortgage Debt Forgiveness Relief Act will expire. If that law expires, the millions of upside down and distressed homeowners could be on the hook for thousands of tax dollars  if they short sell their home or a bank forecloses on it.

Much of the discussion swirls through the chambers of the Senate Finance Committee which in August approved the mortgage forgiveness relief and other housing-related tax extensions that tie into some other laws so the question remains whether the extension of the tax law will be combined with some other laws or pass on its own.

Several Variation Of The Extension To Pass Through Congress

If the law somehow does not pass through the Senate Finance Committee then the House has at least four similar mortgage-debt tax relief bills that have been introduced in the House. The various bills would extend the mortgage forgiveness relief from a minimum of one year through 2015.

The positive aspect for homeowners can be found in the fact that these tax bill extensions come from both party sides so Washington insiders and lobbyists give the bill extension at least a 60% chance of passing in some form.

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

Will The Mortgage Debt Forgiveness Tax Break Be Extended?

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1 Comment

Filed under Banks, Foreclosure, Loan Modifications, Mortgages, short sales, Tax Credits

One response to “Will The Mortgage Debt Forgiveness Tax Break Be Extended?

  1. This is really great information blog , people trying to avoid home foreclosure using a loan modification or other workout may need to move more quickly to take advantage of the benefits offered by the Mortgage Forgiveness Debt Relief Act.

    Reverse mortgage guidelines

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