Wednesday, March 27, 2013

Mortgage Forgiveness Debt Relief Act Extended

The Mortgage Forgiveness Debt Relief Act of 2007 has been extended and will not expire until the end of the year of 2013. As mentioned in the post on Sellers in a Short Sale here, the borrower is subject to income tax if the mortgage lender decides to forgive the borrower or release the borrower from obligations on the balance of the mortgage loan. The Mortgage Forgiveness Debt Relief Act makes an exception to that rule for homeowners who are struggling with their home loans.