Short sale debt help continues in 2013 thanks to some last minute fiscal cliff talks yesterday according to Housingwire. In 2007 congress passed the mortgage forgiveness debt relief act to help curb the consequences on taxes for those who are having difficulty with their mortgages. Specifically when a bank writes off the loss this would get passed to the homeowner as 1099 income and the homeowner would then pay taxes on that amount.
The debt forgiveness act allowed homeowners meeting specific criteria to waive their tax obligations and therefore making a short sale a much more attractive option. To be honest I was surprised this law was extended as our housing market has gone in such a positive direction in the past year and I am certain it will not be extended again. If this law is something that will benefit you then I strongly urge you to take this opportunity to get the help you need and consult with the appropriate professional. If you or anyone you know is in trouble with their mortgage and needs a professionals opinion I can be reached anytime for a free no hassle consultation.