Millions of families who are underwater on their mortgage, delinquent on their payments and heading for foreclosure, short sale or deed-in-lieu of foreclosure settlement, are one step closer to keeping their life preserver for another year.
The Senate Finance Committe has approved a bill extending the Mortgage Forgiveness Debt Relief Act through 2013. This law spares homeowners who receive reductions in their mortgages or go through short sales or foreclosures, from paying taxes on the amount of debt forgiven. This bill also extends tax write-offs for mortgage insurance premiums. Without a formal extension by Congress, starting Jan. 1 all mortgage balances written off by banks would be fully taxable — a nightmare scenario that has worried financially stressed homeowners for months. This bill moves to the Senate for approval next month.
Click "Mortgage Relief May Win Reprieve" to read details in yesterday's Seattle Times article by Kenneth Harney. I also welcome discussing the latest news in real estate with you!