Question Details

Barbara Gran…, Real Estate Pro in Anaheim Hills, CA

Will the Mortgage Debt Relief Act be extended?

Asked by Barbara Grandolfo, Anaheim Hills, CA Mon Dec 31, 2012

We have been hearing so much about the "fiscal cliff" with it's potential effects on the rich, the poor and everyone in between, yet I have heard nothing about extending the Mortgage Debt Relief Act and where it stands in this matter.

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6
They did thankfully, and this year is looking great so far! Agents, buyers, sellers should all be happy:)
1 vote Thank Flag Link Fri Jan 4, 2013
Hi Barbara,
As of late last night; YES, the mortgage debt relief act was extended. Whew!

Here's a link from NAR confirming it:

http://speakingofrealestate.blogs.realtor.org/2013/01/01/sen…

Best wishes!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Wed Jan 2, 2013
it was. Done: debt forgiven in course of a short sale, foreclosure or deed-in-lieu of foreclosure will continue to not be taxed as income.
0 votes Thank Flag Link Fri Jan 4, 2013
I've been wondering the same thing, but my guess is that they have had their hands full with the fiscal cliff. Hopefully we'll get an update this month.

Happy New Year!
0 votes Thank Flag Link Mon Dec 31, 2012
I think it's pretty likely it will get extended, but we'll see. I hate the fact that this act makes it desirable for people to strategically foreclose, but at the same time it seems necessary for the people who can't afford any other route. Check out my blog link below for more thoughts on the fiscal cliff as it relates to real estate.
0 votes Thank Flag Link Mon Dec 31, 2012
Hi Barbara,
I'm asking the same question myself about the Mortgage Debt Relief Act as I haven't heard any updates on it either. We were encouraging agents in my state to contact their representatives to vote to extend it but no word as of yet on its status. I guess we'll have to wait and see if it falls off the cliff too.

Thanks for your post and Happy New Year!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Mon Dec 31, 2012
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