One of the most helpful laws on the books for underwater home owners is set to expire at the end of this year. At this point, NAR expects to make a strong push to get it extended because the law will likely be needed in the years ahead as lenders continue to make loan modifications for hard-hit home owners.
The law is mortgage cancellation relief and it was first passed in 2007 with NAR taking a prominent role as industry supporter. It relieves home owners who get part of their mortgage loan forgiven from having to pay tax on the forgiven portion of the loan.
In the 6-minute video above, NAR Director of Tax Policy Linda NAR Director of Tax Policy Linda Goold talks about the hurdles facing extension of the popular law.