Mortgage Debt Forgiveness Act Receives One-Year Extension

The one-year extension of the Mortgage Debt Forgiveness Act became official last week. The Act, which was effective until January 1, 2014, allowed homeowners who experienced a short sale to be exempt from having to claim forgiven mortgage debt by a lender as taxable income for the year. The extension of the Act applies to short sales carried out in 2014 and covers debts “discharged through December 31st, 2014″ according to the Minnesota Homeownership Center.

Citing statics from RealtyTrac, Housingwire.com reported that “there have been more that 121,700 short sales through October this year, with a total mortgage debt forgiveness of nearly $10.8 billion.” Additionally, RealtyTrac estimated “that the potential taxes on the average short sale to be $22,114.” To read more, visit http://bit.ly/1Blev2b.

Share this article:

One comment on “Mortgage Debt Forgiveness Act Receives One-Year Extension

  1. I was just wondering, what about forgiveness for the people that did not have a shortsale on their homes, but went into foreclosure die to them losing their husband to cancer. Is there any forgiveness for that?

Comments are closed.