Brief The Mortgage Forgiveness Debt Relief Act Has Expired. Renewal Could Benefit Millions.
Laurie Goodman, Ellen Seidman
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At year end 2013 the Mortgage Forgiveness Debt Relief Act expired. Unless Congress extends it, debt on principal residences that has been forgiven or written down after 2013through short sales, deeds-in-lieu, foreclosures or loan modifications will generally be treated as taxable income. We argue that the act is an important facilitator of principal-reduction modifications. Failure to renew is likely to generate little net revenue.
Research Areas Housing finance Housing
Tags Federal housing programs and policies
Policy Centers Housing Finance Policy Center