The Mortgage Relief Act Extension Passes in California

On April 12th, 2010 the state of California passedThe act has been extended for two more years
an extension for the Mortgage Relief Act of 2009.so that these homeowners are not taxed on the
This extension carries this relief act through 2012.forgiven debt as income at least until 2012. For
This presents an opportunity for more Californiathose facing foreclosure or short sale on their
residents to take advantage of the tax breaksprimary residences this may be great news.
granted by this act.Hundreds of thousands of California residents may
The housing market crisis has been exceptionallybenefit from this extension.
hard on California residents. California has one ofIt is simple to qualify for this and if you r are
the highest foreclosure rates in the country. Thisfacing foreclosure or short sale on your primary
is bad enough on residents of the state, butresidence you likely qualify to benefit from the
California income tax laws have only added to theact. Normally a tax professional like an accountant
problem. That is where the Mortgage Relief Actcan answer any questions you may have.
comes in.Information is also provided on the state website.
Any debt that was removed through aThe extension of the Mortgage Relief Act of
foreclosure, short sale, or mortgage restructure2009 will present a large number of homeowners
was previously taxable as income in the state ofwith the opportunity to get back on their feet this
California. Many homeowners that were alreadyyear. If you are facing default on your mortgage
struggling were forced to pay taxes on the debtit may be a good idea to get more information on
the bank had forgiven. This just made thethis extension. Take a moment and find out how
process even more difficult for California residentsit applies to you.
who were in default on their mortgages.