The Mortgage Forgiveness Debt Relief Act, passed by Congress in 2007, expired in December 2013. The Debt Relief Act is a tax exemption that helps people who are losing their homes to foreclosures or short sales whereby the lender allows the borrower to accept a price that is less than the amount owed and the remaining balance is forgiven.
Why is this important?
The housing crisis has not ended! More than 1.2 million properties are in some stage of foreclosure. If the Mortgage Forgiveness Debt Relief Act is not extended, debt reduced by lenders due to a mortgage restructuring, foreclosure or short sale, will once again become taxable income creating additional hardship for people who are already experiencing emotional and financial devastation. Mr. President and Members of Congress, extend the Mortgage Forgiveness Debt Relief Act now!
