Home Selling January 3, 2013

Congress Extends Cancellation of Mortgage Debt Relief


I know, that sounds like a politician's tricky double negative but what it means is that if a lender forgives some portion of a homeowner’s mortgage in 2013, either as part of a short sale or foreclosure, or in a loan restructuring that reduces principal, the owner/seller will not be required to count that forgiven amount as income for tax purposes.

The provision had expired at year end 2012, but has now been extended through the end of 2013/