A major aspect of the success of short sales, particularly in recent years, is under fire. If Congress doesn’t act now we might see business take a big hit. I’m talking about the Mortgage Debt Relief Act.
Basically this law, passed in 2007, means homeowners can be exempt from paying taxes on forgiven debt such as that in short sales or loan modifications. It can make it substantially more appealing for a distressed homeowner to consider a short sale and it’s something we need to strongly encourage Congress to extend. True Congress isn’t getting much done these days but this one should be a no-brainer.
41 attorneys general have already written to the House and the Senate to urge them to extend the bill. Some of the hardest hit states, and therefore those with the most to gain, are at the front of this whole debate. Hopefully there’s enough common sense left in our Congressmen to do what’s right.
If you act right now you can join the growing number of voices pushing for this law. It will make a world of difference in your personal financial situation and will make sure business keeps thriving for a long while. I’m sure you’ll do what’s right.