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Mortgage Debt Relief Extended for another year

by Jamie Namock on January 3, 2013

The Mortgage Debt Relief Act (“MDRA”) enacted in 2007 was scheduled to expire December 31, 2012.  In the “fiscal cliff” legislation just enacted by Congress, however, the MDRA has been extended until December 31, 2013.  Therefore, after a foreclosure or a short sale of a home in Arizona, any debt forgiveness of a mortgage loan used to purchase or improve the home will continue to not be taxable income. As the Arizona Housing market is trending upward we can expect the need for this type of government legislature will be almost none by years end.

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