Upside-down on your Mortgage? Welcome to the Majority!
Can you benefit from the Mortgage Forgiveness Debt Relief Act? Well, that depends on if you have already had any mortgage debt 'forgiven' or 'discounted' since 2007.
If you're still looking for a way to get the debt forgiven in the first place, you should read more about 'loss mitigation' or 'mortgage modification' instead. However, if you've already had your debt reduced, and are still worried about the huge amount of taxes you still owe on that debt, keep reading.
Under current law, if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. It looks just like income to Uncle Sam!
In 2007 the United States IRS announced the Mortgage Debt Relief Act, to allow taxpayers to exclude income from 'forgiven' debt on their primary residence. This isn't exactly an official law, so to speak, and is actually only in effect from 2007 until 2012.
Another limitation includes a $2 million cap on the amount forgiven. It's clearly not for everyone, but since the debt reduced from loss mitigation or loan modification, as well as mortgage debt forgiven from a foreclosure qualifies for this relief, it affects many people today.
This page will host the latest news on the Mortgage Debt Relief Act. Keep reading below to keep up to date on this important new public policy.
Mortgage Relief Fund
As the nation’s economy has declined, Americans are feeling the pinch, with an average of more than $16,000 in debt per person among those who have a credit profile. Freedom Debt Relief co-founder and co-CEO Brad Stroh reminds those who are facing serious debt hardship that they do have options when it comes [...]
Mortgage Relief Calculator
To help you in making this important decision you’ll find below a listing of several factors that should be considered before making your final choice.
The information provided will hopefully assist you in making the decision that’s right for you and your current situation.
Mortgage Payments and Equity
The first thing that you should take into [...]
Mortgage Relief Counselors
If you are in debt the worst thing you can do is pretend the problem doesn’t exist; if this is something you recognize then take advice from a financial counselor to regain some kind of control over your finances. It is important to recognize you have problem and decide to do something about [...]
Obama Mortgage Relief 2009
Question: Does Obama Know What He’s Doing?
The furor over the huge federal spending under President Obama – a $1.75 trillion deficit, 13 percent – obscures an even more basic question: Does he know what he is doing?
That is, does he know how to do anything other than spend?
His stimulus package, of course, [...]
Mortgage Relief Plan Details
It’s amazing how easy it is for Americans today to get lots of bills and be in debt because of those bills. There are some bills that we might expect, while there might be other bills that we don’t, like none of us expect to be in a car accident, but when [...]
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