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Mortgage Forgiveness Act Lives!

In our opinion, one of the only good things to come out of the fiscal cliff negotiations is an extension of the Mortgage Forgiveness Debt Relief Act.  As this article accurately describes, extension means that most homeowners will continue to be exempt from paying federal income tax on debt forgiven by lenders through foreclosure, short sale or loan modification.

http://www.azcentral.com/business/realestate/articles/20130102cliff-deal-extends-law-aiding-distressed-homeowners.html

There remains little to like about this fiscal cliff deal, but not further burdening homeowners who are struggling with mortgage debt is something.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.