Wow that was close!

At the very last minute, Congress passed legislation extending the Mortgage Debt Relief Act for homeowners who do a Short Sale through 2013.  When a homeowner sells their home, the IRS won’t treat the debt forgiven by the bank as income, which means they won’t owe taxes on that amount, therefore allowed a seller to short sale their home without immense tax consequences.

This is amazing news for short sale specialists since many more homeowners will go down the short sale route as opposed to walking away and foreclosing on their homes.