commercial loan news

January 11, 2008

Some Relief For Families Losing Their Homes

SOURCE: Realtor News

National Association of Realtors president Richard F. Gaylord thanks President George W. Bush bringing the Mortgage Forgiveness Debt Relief Act into law.

This new Act will allow people who have lost their homes to avoid paying tax on forgiven residential mortgage debt for their principal residence. Borrowers who realize a reduced obligation to their mortgage debt will not be taxed.

For a person who is losing their home, the last thing they need is an additional tax bill that would likely be difficult to pay. The hope is that these families will have the flexibility to be able to renegotiate the terms with their lender.

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