Important Real Estate Update for Property Owners: U.S. Senate Passes Mortgage Debt Forgiveness

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Included in federal spending bill expected to be signed by President Obama. But an extension to the Mortgage Debt Forgiveness Act was included in the fiscal 2016 federal appropriations and tax relief bill, which passed both the House of Representatives and the Senate on Friday.

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President Obama recently signed into law a bill that, among other things, extends the Mortgage Debt Forgiveness Act until 2017. The Mortgage Debt Forgiveness Act, or the Mortgage Debt Relief Act, allows tax exemptions on short sales of property. A short sale is a sale of real estate in which the monetary return on the sale is lower than, or "short" of, the total debts caused by liens against the property.

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Senate GOP leaders can afford to lose no more than two of their 52 GOP senators in order to pass a tax. outside of the real-estate and public-utility sectors would face a limit on their ability to.

Video: Hartman Simons Partner Jeremy Cohen Discusses Retail from a Lawyer’s PerspectiveImportant Real Estate Update for Property Owners: U.S. Senate Passes Mortgage Debt Forgiveness Outlook for renewal of key tax benefits is improving – WASHINGTON – Here’s some good news for homeowners worried that Congress will fail again to renew.