Extension of the mortgage cancellation relief act moves to Senate
Late last week, the Senate Finance Committee 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 Sept. 10. Chairman Baucus (D-MT) had hoped 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 also would be considered in the House before the election.
Without this extension the Mortgage forgiveness and debt relief act will sunset at the end of 2012.This act offeres relief to homeowners who would formerly owe taxes on forgiven mortgage debt after a short sale.
Source: Calif Association of Realtors Newsline..