Good news for short sellers!!

Lawmakers managed to extend the Mortgage Forgiveness Debt Relief Act as part of their 11^th hour deal to avoid the fiscal cliff.

The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31.

Without an extension, homeowners who completed short sales or mortgage modifications may have faced tax bills in the tens of thousands of dollars. Some industry officials feared that would hurt the housing recovery.

Source: http://www.sun-sentinel.com/business/realestate/house-keys-blog/sfl...