I have received a lot of questions lately on the status of the Mortgage Forgiveness Debt Relief Act of 2007 (HR 3648). For those not familiar with this act, this is a bill that would eliminate tax on forgiven debt. Here is a brief explanation (from an earlier post on this blog):
If a mortgage lender forgives debt as part of a short sale or foreclosure or what have you, they send the IRS a 1099 with the amount forgiven. At tax time you are obligated to report this forgiven mortgage debt as 1099 income.
Now going back to the status of the bill, it seems to have stalled in the Senate after passing the US House in early October. Based on the number of inquiries I have received there appear to be many people who are interested in seeing this bill passed. If you are one of those I suggest you contact your Senator to ask why they have not acted on this bill. Maybe things will move along after they realize how many people want this bill to pass.
$8000 Tax Credit May be Extended
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on Dec 17th, 2007 at 7:57 pm
[...] House passed a similar bill earlier this year called the Mortgage Forgiveness Debt Relief Act of 2007 (HR 3648). Now the two bills will be reconciled and sent to the President for his signature. There is [...]
on Feb 9th, 2008 at 3:26 pm
I am only 1 month behind on my mortgage,but it seems like the lender is on my case about it.My wife was sick and out of work for less than a month.now I get called every day,sometimes 3-4 times a day by an auto dialer.I tried a repayment plan,but on my $1800 a month mortgage they want to do a repayment plan starting at 22-2400 a month.If I had that type of cash,it would be repaid. I am making payments on time,again.I only got off track by a month. What can the mortgage company do to help me.I wanted to make partial payments to my loan,but was told that 1) it had to be on a repayment plan or 2) I can pay to the principl,but it will still be late until I make “the late payment”….what should I do.
DJ
on Jun 26th, 2009 at 6:18 am
[...] Update: Mortgage Forgiveness Debt Relief Act of 2007 | Arizona I have received a lot of questions lately on the status of the Mortgage Forgiveness Debt Relief Act of 2007 (HR 3648). For those not familiar with this act, [...]