Short Sale Tax Relief Looking Very Hopeful

In a wide margin vote of 76-16 on Tuesday, the Senate passed the Mortgage Debt Forgiveness Act for short sales in 2014. The bill will gives a tax break on any mortgage forgiveness given to homeowners, which will be counted as income if not passed into a law.

In the first 3 quarters of 2014, the average mortgage debt forgiveness was 75,000 amounting to $8.1 billion dollars over 170,000 short sales – according to a recent estimate from RealtyTrac.

The National Association of Realtors is happy with the outcome and effort for both chambers to get this pushed through before the year end.