Will the mortgage debt forgiveness relief act be extended?


Who thinks it will be extended and why?


Hi B Keil,
This is a REALLY good question! Although we hope that this will be extended the fear is that it is being overshadowed by the battle over the “fiscal cliff”. So far there does not appear to be much discussion on this extension although we know that Realtors and real estate associations are working hard to keep the pressure on the local and national politicians.
If you asked me this early in 2012 I would have said that it was very likely to be extended. Now that you have the majority of the population living in fear of a substantial increase in their taxes I do not believe there is widespread concern for the tax relief on those that are getting a substantial amount of debt forgiven. Of course with the lack of housing inventory this short sighted attitude may cause even greater housing problems if the tax relief is not extended and this results in fewer short sales.