Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Mortgage Debt Relief Act of 2007 Set To Expire December 31, 2012

While most people got caught up in the pre holiday preparations, 41 state attorney generals signed a letter urging U.S. House and Senate leaders to extend the soon to expire Mortgage Debt Relief Act of 2007.

The attorney generals argued failure to extend the act would take away from the national mortgage settlement. The AGs took the position that requiring homeowners to pay taxes on the cancelled debt from a cancelled mortgage would make the National Mortgage Settlement much less effective.

The act, set to expire December 31, 2012, exempts homeowners from paying taxes on forgiven mortgage debt such as from a short sale or loan modification.

AG Settlement Has Provided $13.1 Billion In Debt Relief

The Settlement has brought relief to some homeowners. According to monitor Joseph Smith services have provided $13.1 billion in debt relief through short sales as of September 30, 2012. Additionally, 21, 833 borrowers have received principle reduction totaling $2.55 billion in relief. Although as we have pointed out in previous posts, the banks have been cherry picking in terms of these principle reductions by giving them to homeowners in where it typically benefits the banks balance sheet more that the struggling homeowner.

We shall see how this Mortgage Debt Relief Act of 2007 plays out as a part of the nation’s fiscal cliff.

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

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

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