The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
“Requiring a homeowner to pay income tax on forgiven or canceled mortgage debt would make the National Mortgage Settlement much less effective,” the letter states. The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
The act, which is set to expire December 31, 2012, allows taxpayers to be excluded from paying taxes on forgiven debt from a foreclosure, short sale, or loan modification… In a release, Nevada Attorney General Catherine Cortez Masto explained the act is expiring at a time when homeowners are benefiting from the national mortgage settlement, which obligates five of the largest mortgage services to provide $20 billion in credited consumer relief.
http://www.dsnews.com/articles/forty-one-ags-sign-letter-urging-congress-to-extend-debt-relief-act-2012-11-20 RT #DSNEWS #WadkinsRealEstatePosted in Uncategorized