Struggling homeowners who modified mortgages won't get hit with huge tax increase

Extension of Mortgage Forgiveness Debt Relief Act will prevent mortgage modification or short sale as being treated as taxable income.

Norwalk Reflector

U.S. Sen. Sherrod Brown (D-OH) recently helped pass provisions of the Mortgage Forgiveness Tax Relief Act, legislation aimed at relieving homeowners of the requirement to pay taxes on mortgage debt forgiveness resulting from mortgage modifications, or short sales.

The provision was included in the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, which passed the Senate Finance Committee. Brown worked with Ohio realtors and held events in Cleveland, Toledo, and Youngstown to urge extension of the vital tax credit, which expired on December 31.

“Today, we’re one step closer to reinstating a tax provision that prevents hardworking families get back on their feet and help keep individuals in their homes,” Brown said. “With housing markets beginning to recover, we must continue to provide the resources necessary to protect homeowners by extending tax relief to individuals who have gone through mortgage modifications or worked with their bank to sell their homes. This provision will help to strengthen communities and preserve homeownership.”

To read the full article, please click the source link below:

Struggling homeowners who modified mortgages won't get hit with huge tax increase »