AG's asking for Extension of Debt Relief Act

From  DS News

 

Forty-One AGs Sign Letter Urging Congress to Extend Debt Relief Act

Forty-one state attorneys general signed a letter Tuesday urging U.S. House and Senate leaders to extend the expiring Mortgage Debt Relief Act of 2007. The attorneys general argued failure to extend the act would take away from the national mortgage settlement. "Requiring a homeowner to pay income tax on forgiven or canceled mortgage debt would make the National Mortgage Settlement much less effective," the letter states. The act, which is set to expire December 31, 2012, allows taxpayers to be excluded from paying taxes on forgiven debt from a foreclosure, short sale, or loan modification. » Read More