Mortgage Debt Relief - Homeowners Facing Foreclosure

Initially a limited offer in 2007, mortgage debt relief is waiting for homeowners facing foreclosure. Now extended through 2012!

Background: In 2007 and for the following 3 years, many principal residence homeowners were told they would not experience the stress of additional income tax after a foreclosure.

December 20, 2007, President Bush signed the Mortgage Forgiveness Debt Relief Act, providing mortgage debt relief for many homeowners. Prior to the act, American homeowners who could not stop mortgage foreclosure were subject to additional income taxes.

The burden of additional debt the IRS is obviously the last thing any homeowner needs during the stress of foreclosure.

For more help, read Home Affordable Refinance Program (HARP) and mortgage loan modification information.

Mortgage Debt Relief Act of 2007

Mortgage Debt Relief Signed By The President Of The United States

The President:

"I'm pleased to sign a bill that will help homeowners who are struggling with rising mortgage payments. The Mortgage Debt Relief Act of 2007 will protect families from higher taxes when they refinance their homes. It will help hardworking Americans take steps to avoid foreclosure during a period of uncertainty in the housing market.

In recent months, our nation's housing market has faced serious strains. Home values have fallen in many parts of our country. At the same time, many homeowners with an adjustable rate mortgage have seen their monthly payments increase faster than their ability to pay. And now some homeowners face the prospect of foreclosure.

The bill I sign today, Mortgage Debt Relief Act, will help by ensuring that refinancing a mortgage does not result in a higher tax bill. Under current law, if the value of your house declines and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as money that can be taxed. And of course, this makes a difficult situation even worse.

When you're worried about making your payments, higher taxes are the last thing you need to worry about. So this bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. The provision will increase the incentive for borrowers and lenders to work together to refinance loans -- and it will allow American families to secure lower mortgage payments without facing higher taxes.

By taking these steps, we can help our homeowners -- and we'll help more Americans become home owners. We want people to have a place they can call their own.

After all, it's an essential part of the American Dream. And we want that dream to extend throughout our nation." --George W. Bush, December 20, 2007

For a limited time, mortgage debt relief is available through the Mortgage Debt Relief Act signed by President Bush. The time to act is now. Learn how to stop mortgage foreclosure with these 8 strategies.

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