Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Mortgage Debt Forgiveness Tax Relief Law Expires December 31, 2012

Depending who gets elected will go a long way in determining how the real estate market shapes up. Will HUD survive? Will the banks take more control? One of the more important but overlooked issues remains the expiration of the Mortgage Debt Forgiveness Tax Relief law which expires at the end of this year.

If the law expires, homeowners who negotiate a short sale or lose their homes through foreclosure would have to pay federal taxes on the amount forgiven by their lender.

Congress will go back into session following this week’s elections and for the millions of distressed homeowners passing san extension of this law will be vital to the housing recovery and well being of homeowners. The extension of the law could affect almost one-quarter of all real estate transactions.

Distressed Homeowners Should Contact Congress Regarding The Extension

Without action before the end of the year, millions of families who hold distressed properties could face a hefty tax bill for trying to modify their mortgage or to seek a short sale through their lender. Even those facing foreclosure will find themselves forced to pay a “foreclosure tax” if Congress doesn’t act.

This amount on the debt forgiven by the lender would be considered “phantom income” to the borrower even though they never receive any payment from the lender.

The NATIONAL ASSOCIATION OF REALTORS has issued a nationwide Call-for-Action, urging members to contact their Members of Congress in support of extending the current Mortgage Debt Forgiveness Tax Relief law. We take it a step further and urge all homeowners (especially those underwater or in distress) to contact their congressperson to urge extension of the law.
For those interested in the Call for Action please click on this link.

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

Call To Action For Mortgage Debt Forgiveness Tax Relief Law

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2 Comments

Filed under Banks, Foreclosure, short sales, Tax Credits

2 responses to “Call To Action For Mortgage Debt Forgiveness Tax Relief Law

  1. Pingback: Housing Resource And Foreclosure Prevention Clinic In Oakland | Resource Blog

  2. Pingback: Bay Area Resource Hosts Underwater Panel Event In San Mateo | Resource Blog

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