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Mortgage Forgiveness Debt Relief Act Extended Through 2016

Something very important happened very quietly when Congress passed the new federal budget in December.  Included in it was an extension of the Mortgage Forgiveness Debt Relief Act, which allows debt forgiveness NOT to be taxed as income, through the end of 2016.  It also was made retroactive for all of 2015, as well.  To be eligible for this tax relief, the house must have been a principal residence for at least two of the past five years and the debt must have been used to buy, build, or make substantial improvements to the house.  This is great news for those who need to sell a home and owe more than the property is worth.  If you are considering a short sale, you will want to do so soon, as short sales typically take 3 to 6 months to complete.  I am an experienced short sale listing agent and am available to answer any questions.  Just contact me.

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