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At CAPITOL ♦ TITLE each of us will listen to you and strive to understand your concerns. Our experience will help us recognize your specific needs and respond to them.
Legal Bulletin
Short Sale Debt Relief Extended Through 2013
Thankfully, Congress has acted to extend the Mortgage Debt Forgiveness Act through 2013, providing a sigh of relief to thousands of underwater homeowners who would have otherwise faced the prospect of paying income taxes on the mortgage debt forgiven when their mortgage lender approves a short sale, loan modification (with principal reduction) or completes a foreclosure sale. The Act expired on December 31, 2012 and there was a significant concern that the political focus on the “fiscal cliff” crisis would result in the failure of Congress to take steps to review and extend this benefit. A failure to extend could have had a significant impact on the decision of homeowners to enter into short sale transactions.
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