Chicago, IL (PRWEB) January 22, 2013
The Federal Savings Bank believes that the avoidance of the fiscal cliff gave some home owners new life as the Mortgage Forgiveness Relief Act of 2007 was extended through 2013.

The Mortgage Forgiveness Debt Relief Act of 2007 was sent to Congress on September 25, 2007, and was implemented as a law on December 20, 2007. The legislation gives relief to property owners who owed taxes on forgiven mortgage debt when they were near foreclosure.

The extension of the legislation will give property owners who sell their major residence in a brief sale or drop their residence as a result of foreclosure the freedom of not becoming necessary to spend taxes on their losses. Although avoiding taxes, homeowners will also keep away from getting their credit score lowered by a foreclosure.

Congress voted to pass an extension of the Mortgage Forgiveness Debt Relief Act as portion of tax bill H.R. 8. The act is now be extended till December 31, 2013, providing property owners who are underwater a chance to take into account other options as opposed to obtaining to opt forgo a quick sale or loan modification.

“For distressed home owners, the extension of the Mortgage Debt Relief Act is wonderful news,” stated Dawn Wooldridge, CDPE of Keller Williams American Premier Realty. “Before this act, property owners would negotiate a loan modification or keep away from foreclosure by way of a short sale only to locate they owed an equally unmanageable tax debt afterwards.”

Do your homework
According to Forbes, home owners ought to do their homework if they plan on taking advantage of the Mortgage Debt Relief Act. Mortgage refinancing has become much more popular and could be a sensible option for several Americans who are searching to spend less than they have in the previous.

“I’m committed to assisting home owners who are struggling,”