Hear ye hear ye!
The Federal Mortgage Forgiveness Debt Act Extended Through 2013!
The Mortgage Forgiveness Debt Relief Act of 2007 that was set to expire on December 31, 2012, was extended through January 1, 2014. What that means is that mortgage debt that is forgiven as part of a debt restructuring agreement will not be treated as income for another year. This is really good news for those sellers who are currently in a short sale contract, or for those who will be short and selling this year. Although this is great news it is crucial for sellers to understand that this forgiveness is not a blank check and does not work for everybody. Be sure you read the details AND seek qualified advice from an attorney.
Click here for more information. http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation