NAR Call For Action: Mortgage Debt Forgiveness Tax Relief

NAR Call For Action: Don’t Tax “Phantom Income”

Recently, NAR sent out a Call for Action regarding the extension of the Mortgage Forgiveness Tax Relief Act. We encourage you to take action now in an effort to protect our industry.
Congress has begun its “Lame Duck” session with a big list of unfinished business items. Number one on that list for REALTORS® is an extension of “The Mortgage Forgiveness Tax Relief Act.”

As part of the Member Value Plus Program, members who respond to this Call to Action from November 16 to November 30 will earn a FREE copy the 2014 NAR Profile of Homebuyers and Sellers-Download.  Click here for further details about the program.

This bipartisan legislation would extend an expired provision that has helped millions of distressed American families by allowing tax relief for homeowners when lenders forgive some portion of the mortgage debt they owe. Today’s housing market is finally recovering. However, there are still too many homeowners unable to meet their mortgage obligations.  Estimates show that about 5.3 million homes are still under water. In addition, there are still more than 1 million homes in the process of foreclosure.

If “The Mortgage Forgiveness Tax Relief Act” is not enacted, hundreds of thousands of American families who did the right thing by short-selling their home or received a much needed loan reduction from their lender will have to pay income tax on “phantom income.” Urge your Member of Congress and Senators to act on “The Mortgage Forgiveness Tax Relief Act” before the end of 2014 and help provide certainty for struggling homeowners and stability for our nation’s housing markets.

Tell Congress: Don’t Tax “Phantom Income” on Short Sales.