Mortgage Forgiveness Debt Relief Act Reminder
Related Posts: Credit & Finance, Real Estate News
hiDon’t forget, on December 18, 2007 Congress passed new legislation (H.R.3648) to eliminate taxes on mortgage debt. The legislation was signed into law by President Bush on Dec. 20 and will provide a temporary, three-year change to the tax code to eliminate any taxes homeowners might face when banks renegotiate the terms of a home loan and forgive a portion of the outstanding mortgage debt. The change in the tax law will cap untaxable forgiven debt at $2 million and apply only to principal residences. It removes the tax burden on mortgage indebtedness, encourages loan restructuring between lenders and homeowners, and discourages foreclosures. I have found there are still many that are not aware of this. The Florida real estate market holds many opportunities for both buyers and sellers to reach equitable agreements to serve both party’s goals. One to move in and the other to move on !