Extension of the Mortgage Debt Forgiveness Act But Not For California….Yet

Extension of the Mortgage Debt Forgiveness Act But Not For California....Yet

Extension of the Mortgage Debt Forgiveness Act But Not For California….Yet

Extension Of Act Now Set To Expire January 1, 2014

While pundits in Washington DC debated about who won and lost in the recent government “fiscal cliff” negotiations, Bay Area homeowners scored a victory. Congress extended the much-needed Mortgage Forgiveness Debt Relief Act until January 1, 2014. The law initially expired on December 31, 2012.

California Senate Bill 30 Addresses Extension Of State Tax Law

While the federal government extended the tax relief for one year, California still has not extended the state tax law. Fortunately, Senate Bill 30 is making its way through the California State Senate. This much-needed bill would offer one additional year exempt the taxation of mortgage debt (sometimes known as “phantom income”) that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification.

This important topic will be one of the key issues discussed at the free Underwater Homeowners Forum Thursday January 17th from 6-8 p.m. at 1100 Park Place ‘Lobby’ San Mateo CA, 94403. The forum takes place every 3rd Thursday through 2013.

Homeowners interested may register at Bayarearesource.com or call 415-578-7488 and choose option 2.

Homeowners who cannot attend can view via live video streaming and achieves.

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Filed under California, Loan Modifications, short sales, Tax Credits

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