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Health & Fitness

Congress Extends Mortgage Forgiveness Debt Relief Act Through 2013

It came down to the wire but Congress passed an extension of the Mortgage Forgiveness Debt Relief Act of 2007 to aid homeowners who may find themselves in danger of losing their homes to foreclosure.

Greater New Haven Underwater Homeowners Breathe a Sigh of Relief as Congress Extends Mortgage Forgiveness Debt Relief Act!

There's outstanding news for all Greater New Haven underwater homeowners!  As part of the tax bill to address the “fiscal cliff,” Congress passed an extension of the Mortgage Forgiveness Debt Relief Act of 2007, pushing the expiration date to December 31, 2013.

The extension of this act comes as welcome news to the millions of homeowners facing foreclosure nationwide.  For another year, qualifying homeowners can escape overwhelming mortgages without paying taxes on mortgage debt forgiven during the process.

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Originally passed in 2007 The Mortgage Forgiveness Debt Relief Act was enacted to aid the millions of homeowners who suddenly found themselves in danger of losing their homes to foreclosure following the housing market crash.

Under the Mortgage Forgiveness Debt Relief Act, any debt forgiven in a short sale, foreclosure, or loan modification, is exempt from federal taxes on primary residences. For homeowners facing foreclosure, this exemption saves them from paying thousands, or even tens of thousands, in taxes on top of losing their homes.

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Now for another year Greater New Haven homeowners can take advantage of this exemption and avoid foreclosure without the fear of an impossible tax liability.


Contact Donna Bigda CDPE, ABR, SRES, e-Pro RE/MAX Alliance Licensed REALTOR® in the State of Connecticut at 203-488-1641, ext. 214 to list your property for sale or to purchase a property in Branford, Guilford, Madision, East Haven, New Haven and the rest of the Greater New Haven shoreline area.

If you're facing financial difficulty, finding it hard to pay your mortgage and owe more on your home than what it's worth please give me a call to discuss your options.  Even if you're facing the possibility of foreclosure it is not too late to try and sell your home as a short sale. A short sale is an emotional transaction and I can help you take the stress out of losing your home to foreclosure.  Call me today for a confidential consultation.

Important Disclosure:  RE/MAX Alliance is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating. RE/MAX Alliance is not engaged in the practice of law nor gives legal or tax advice. It is strongly recommended that you seek appropriate professional legal counsel and tax advice for any real estate transaction.

Copyright © 2013 by Donna Bigda, All Rights Reserved ...*Congress Extends Mortgage Forgiveness Debt Relief Act Through 2013"

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