GREAT NEWS!!! The mortgage debt forgiveness act has been extended!
The bad news? It’s only extended until the end of this month (December 31, 2014).
In the past, congress has extended the mortgage debt forgiveness act a few times already. This law allows sellers who were completing short sales or foreclosures to eliminate any need to pay tax on the amounts of debt being forgiven by the lender (or lenders). This has been a very favorable law since 2007.
It has previously expired in 2013.. while the details are still being worked out, it appears that congress will extend this bill for debt forgiven between January 1st and December 31st, 2014.
We had hoped for an extension through the end of 2015, but that does not appear to be on the horizon at present.
But, this is great news for sellers who had (or will) complete their short sale or foreclosure during 2014. While many had anticipated a tax implication, that may now have disappeared!
If you’re facing some tough times and need to discuss the options available, give me a call at (206) 293-1005 or send an email to: Jen@HudsonCREG.com. Our discussions and your information is always kept confidential… forever.