Mortgage Forgiveness Debt Relief Act Ends 2013

Mortgage Forgiveness Debt Relief Act

WHY THE EXPIRATION OF THE MORTGAGE DEBT FORGIVENESS ACT RARELY APPLIES TO ARIZONA SHORT SALES AND FORECLOSURES

Mortgage Forgiveness Debt Relief Act

After years of extensions to the Mortgage Debt Forgiveness Relief Act, this act will expire at the end of this year. As a result, homeowners were pressured to sell their properties prior to the end of the year and if unsuccessful, told that they may owe a tax next year. But here is the rub; the Mortgage Debt Forgiveness Act does not apply to ninety percent of mortgages in Arizona and these scaremongers have left thousands of Arizona homeowners paralyzed in their underwater home. 

If you want to understand why this is please read this memo Expiration of MDRA is non event in AZ written to explain why the IRS does not tax the Cancellation of Debt on Non-Recourse Debt. It is up to date on current IRS tax law and current Arizona foreclosure and deficiency Law. Paul Valentine and Kevin Hardin have worked together over the last few years to help Arizona homeowners understand their legal and tax obligations related to foreclosure, short sale, loan modification, deficiency and deed in lieu.

Paul Valentine obtained his LLM in Tax from New York University Law School and is a federally authorized tax practitioner. He is admitted to the Arizona and Massachusetts Bar.

Kevin W. Hardin received his J.D. from Concord School of Law and is a specialized paralegal and Director of the Mortgage Mediation Group at McCarthy Law PLC

About Kevin Hardin

Kevin W. Hardin is a 22 year veteran of the Mortgage and Real Estate industries. He holds a Juris Doctor (JD) degree from Concord Law School and a CMB (Certified Mortgage Banker) from the Mortgage Bankers Association. He is a Senior Loan Officer at HomeStreet Bank. He works with Borrowers, Attorneys, Title Companies, Real Estate Agents and Mortgage Companies on mortgage law issues.

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  1. […] the expiration of the Mortgage Debt Relief Forgiveness Act of 2007 there will be ever greater concern over tax consequences from a debt settlement on a HELOC or Short […]

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