Make your voice heard on Mortgage Debt Forgiveness

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Sure, you’re still working at digesting the Thanksgiving turkey leftovers.

And you’ve got holiday shopping to do, parties to go to and eggs to nog.

But before you descend into the holiday madness, take an important step to tell federal lawmakers to address a critical piece of legislation that affects millions of homeowners, the Mortgage Forgiveness Tax Relief Act.

What’s this, you ask? During the financial crisis millions of American homeowners found themselves owing more than their homes were worth. These homeowners in many cases are faced with short sales or workout situations with lenders which “forgave” some of the debt.

While that sounds straightforward, the absence of the Mortgage Forgiveness Tax Relief Act makes it burdensome for the homeowner. Without a renewal on this legislation a homeowner in this situation would actually be taxed on the amount forgiven.

In other words, a homeowner could be taxed on money he or she never had. (To learn more, NAR has a great Q&A here.) NAR estimates there are 5 million homeowners who are still underwater, so this bill would help many REALTOR® clients.

Urge lawmakers to renew this act before they go home for the holidays and protect homeowners by taking part in this Call for Action!

 

 

 

 

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About Jon Broadbooks

Jon Broadbooks is Vice President/Communications for Illinois REALTORS®. He serves as editor of online and print content for the association’s communications including the Illinois REALTOR® magazine and e-newsletters. He conducts spokesperson training seminars and oversees website development for the Association.

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