Mortgage Forgiveness Debt Relief extended. Whittier home owners who owe more on their mortgage than what their home is actually worth can benefit greatly from the extension of the Mortgage Forgiveness Debt Relief Act through December 31, 2013 according to California Association of Realtors. The Act relieves distressed homeowners from having to pay income taxes on the mortgage debt forgiven in a short sale, foreclosure, or principal reduction. This is a much needed option for Whittier home owners who may need to short sale their home and get get back on track to financial recovery.
The American Taxpayer Relief Act of 2012, as part of a deal to avert the fiscal cliff. This legislation includes extending the Mortgage Forgiveness Debt Relief Act through December 31, 2013. The law impacts homeowners who are granted principal forgiveness on their loan, due to a short sale in CA, a deed-in-lieu of foreclosure, or have lost their home to foreclosure. This is amazing news for California home owners who have been one of the most affected states since home values began to decline.
