Mortgage Forgiveness Debt Relief Act Extension
702-487-0000 - Before I jump into examples as to why I think the expiration of the Mortgage Forgiveness Debt Relief Act may be a blessing in disguise, I think it's important we take a look at what it actually is and how it started. As the real estate market came crashing down many home owners started losing their homes to foreclosure or they had to attempt to negotiate the debt with their lien holders to get a loan modification or short sale. The issue these home owners ran into was that in the eyes of the Internal Revenue Service, housing debt that is forgiven or written off is the same as income. As you can imagine, getting hit with an extra $200,000 in taxable income could be just as detrimental to a home owners financial situation as the foreclosure itself.
