Home > Blogs > Colorado > El Paso County > Colorado Springs > Congress Extends Mortgage Debt Relief Act!

Mindy Gasparek's Blog

By Mindy Gasparek | Agent in 80829

Congress Extends Mortgage Debt Relief Act!

Congress Extends Mortgage Debt Relief Act!

January 2nd, 2013 in Alex Charfen by cdpe

On January 1, 2013, as part of the so-called fiscal cliff negotiations, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act. This extension of this act, which has saved homeowners more than $1 billion dollars in taxes, is great news for struggling homeowners nationwide, and for the agents that represent them.

The extension is now only awaiting President Obama’s signature.

The Mortgage Forgiveness Debt Relief Act was originally passed in 2007 to aid the millions of homeowners who suddenly found themselves in danger of losing their homes to foreclosure following the housing market crash.

Under the Mortgage Forgiveness Debt Relief Act, debt forgiven in a short sale, foreclosure, or loan modification, is exempt from federal taxes on primary residences. For homeowners facing foreclosure, this exemption saves them from paying thousands, or even tens of thousands, in taxes on top of losing their homes.

Now for another year, homeowners can take advantage of this exemption and avoid foreclosure without the fear of an impossible tax liability.

And with banks recognizing the significance of short sales as an effective loss mitigation tool, they’re ramping up for business. Short sales will be the key loss mitigation tool used by mortgage servicers in 2013.

Mindy Gasparek
Licensed Real Estate Broker
Certified Distressed Property Expert


 Re/Max Properties, Inc


By Mindy Gasparek,  Mon Jan 14 2013, 11:25
Thanks! I appreciate the comment! All the best.

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer