Oppenheim Law

Saturday Round-Up; Mortgage Debt Relief Extended?; NY Foreclosure Dismissed; Foreclosure Crisis in A Quilt

Blog post   •   Mar 31, 2012 13:15 EDT

Saturday Round-Up; Mortgage Debt Relief Extended?; NY Foreclosure Dismissed; Foreclosure Crisis in A Quilt

March 31st, 2012 Share|

Bill extends Mortgage Debt Relief Act of 2007

I warned you earlier this month that if you’re considering a short sale, the time to get the ball rolling is now.

That’s because the Mortgage Debt Relief Act, which was passed in 2007, is set to expire at the end of this year. If that happens you’ll have to pay taxes on any forgiven debt that comes out of a short sale.

I remain skeptical that Congress, in this election year, will come through and extend the MDRA, but at least some Congressmen haven’t forgotten how important this legislation is. Then again, in an election year anything is possible.

U.S. Reps. Jim McDermott, D-Wash., Shelley Berkley, D-Nev., and John Larson, D-Conn., have introduced the Homeowners Tax Fairness Act. It would extend the Mortgage Debt Relief Act for another three years.

Let’s hope Congress gets their act together and passes this bill.

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