Group Urges Congress to Extend Tax Break on Discharge Mortgage Debt
Sarah Tood at The American Banker reports on BCC urging lawmakers to extend the Mortgage Forevieness Debt Relieft Act. Set to expire at the end of December, the MFDRA "allows homeowners to avoid paying taxes on discharged mortgage debt of up to $2 million for a married couple." If the law expires, foreclosed homeowners or homeowners restructering their mortage would be require to pay taxes on cancelled or forgiven debt.
BCC CEO Elyse Cherry wrote a letter to the Massachusetts delegation this week as the MFDRA is cricital to loan-modification programs like the SUN Initiative.