Mortgage Debt Forgiveness may be extended through 2014

(Note: The MDFA expired at the end of 2013. This is an old post that and it was not extended through 2014-sorry folks. TS)

It looks like there is a proposal in the 2013 budget package to extend the Mortgage Debt Forgiveness Act (MDFA) through 2014.

The MDFA is an important law that allows homeowners to avoid being taxed on foreclosures and short sales for their primary residences. It was supposed to expire at the end of 2012.

This is not passed yet, but at least it’s in the works

*Thanks to sharp-eyed Chris D.  for pointing this out. 

Related posts:

1. What to do if the Mortgage Debt Forgiveness Act expires?
2. New Illinois short sale law chopped to pieces
3. Unwelcome surprise: 1099 after foreclosure and short sale
4. Investment property: When to file bankruptcy in a short sale or foreclosure
5. High earners & short sales