On Sunday, November 4, NAR issued a Call for Action regarding the extension of Mortgage Forgiveness Tax Relief.
What’s It About?
Today, if a lender forgives some portion of a homeowner’s mortgage, either as part of a short sale or foreclosure, or in a loan restructuring that reduces principal, the owner/seller will pay no income tax on the forgiven amount.
Many real estate transactions, including loan modifications, short sales and foreclosures, may not be able to close before year-end. If owners are unable to close these transactions, and if Congress does not act, these owners and sellers will not receive the benefit of tax relief provisions they have relied on. This uncertainty adds a new financial burden to sellers who are already in financial trouble.
Tell Congress to keep the housing recovery on track by sending a message through the REALTOR® Action Center.
Should you have questions about the Mortgage Forgiveness Tax Relief or need more information, you will find it on the REALTOR® Action Center or by clicking HERE.