An extension of The Mortgage Forgiveness Debt Relief Act of 2007 to 2013 has finally left its US Senate committee on it way to the full US Senate.
The relief act that allows the tax burden of both foreclosures and short sales to be forgiven is set to expire on December 31, 2012. But the proposed extension would last until December 31, 2013.
Even thought this is good news, it doesn’t make sense to “wait out the market” because the extension isn’t guaranteed. We suggest that you take the first step and find out if your home is an asset or underwater by using our Short Sale Calculator.
As reported by Real Estate Insider News:
The Senate Finance Committee has crafted and sent to the full Senate a package that would extend the mortgage relief provision for an additional year, through Dec. 31, 2013.
The Senate was unable to act on the bill before adjourning for its August break and the party conventions. The Senate reconvenes on Sept. 10. Chairman Baucus (D-MT) had expressed a wish to finish this package before the election in order to provide certainty about the extension (or not) of more than 50 provisions. Nonetheless, it is not known if the package would also be considered in the House before the election.