March 5, 2012
Senator Debbie Stabenow (D-MI)has introduced S. 2144, a bill that would make the mortgage debt forgiveness rules permanent. The rules that currently provide relief for homeowners in short sales, foreclosures or loan modifications expire December 31, 2012. This relief is essential to affected homeowners so that they will not have to pay tax on the forgiven debt.
A companion bill in the House will be introduced soon.