Q:
What Is the Mortgage Debt Relief Act Extension?
A:
Quick Answer
The Homeowners Debt Relief Extension Act of 2014 seeks to extend the exclusion of forgiven mortgage debt from taxable income for financially underwater homeowners. The Act exempts qualified homeowners from paying taxes on cancelled debt of up to $2 million resulting from foreclosures, short sales or loan modifications.
Continue ReadingFull Answer
Realtors and lenders see this act as crucial for the growth of the real estate market. As of September 2014, reports indicate that the delay by Congress in passing the bill is causing negative ripples in the housing market. The extension of this act is estimated to cost up to $5.4 billion over 10 years.
Learn more about Credit & LendingRelated Questions
-
Q:
What Is a Reverse Mortgage?
A: Reverse mortgages are loans that allow homeowners to borrow against the equity in their homes. They receives monthly payments or in some cases a line of cr... Full Answer >Filed Under: -
Q:
What Are the Rules Regulating Debt Collectors in the United States?
A: The Fair Debt Collection Practices Act forbids debt collectors to harass, abuse or deceive consumers when attempting to collect debts, reports the Federal ... Full Answer >Filed Under: -
Q:
What Is Mortgage Amortization?
A: Mortgage amortization is the payment of debt on a home using a schedule of fixed payments prescribed at the beginning of a mortgage loan period, explains I... Full Answer >Filed Under: -
Q:
How Do I Write a Debt Forgiveness Letter?
A: To write a debt forgiveness letter, clearly state the reasons why the request for debt relief is being made, recommends the Credit Counseling Society. For ... Full Answer >Filed Under:
