We’ve been working hard behind the scenes.
National REIA, our lobbyist John Grant, and me.
To get a specific piece of legislation passed.
The “Mortgage Forgiveness Debt Relief Act”. This is a Short Sale Tax Extension that protects distressed homeowners from $8.1 billion in “phantom income” taxation from the IRS.
Since it expired, it has nearly stopped the process of short sales, damaging both homeowners in distress with no other options, and the investors who were trying to help using the short sale method.
Last week, the United States House of Representatives, at our urging, passed this bill.
The Senate votes on it tomorrow.
We expect the Senate to take swift action on the measure and then President Obama is expected to sign it upon passage in the Senate.
Congressional action sets the stage for passage of a permanent break in 2015 to expand utilization of short sales.
Congressional delay on this measure has dramatically reduced the use of short sales, so today’s success is an important step toward reinvigorating the short sale market for the residential investing community.
As part of National REIA’s ambitious government relations agenda for 2015, we plan to pursue permanent relief for our members by calling for permanent relief for distressed homeowners who use a short sale.
Additionally, we intend to work with FHA on the seasoning requirements for flipping a home rehab property and a number of other important provisions directly relevant to helping all investors and our members grow their businesses.
We would like to thank Senator Dean Heller and Senator Debbie Stabenow for their leadership in pushing for the Mortgage Forgiveness Debt Relief Act. We also recognize the work of House Leadership and the White House for reaching a deal on this critical tax extension.
For additional background on this issue, HousingWire.com published one of my articles. Read it here: