The Minnesota Home Ownership Center has recently updated its Fact Sheet: "Mortgage Debt Forgiveness - Key Facts"
In late December 2007, Congress passed legislation changing the tax code relating to mortgage debt forgiveness. Ordinarily, debt forgiveness – including short sales, short refinances, deed-in-lieu of foreclosure or other ways lenders forgive debt owed - counts as taxable income. The legislation from 2007, which was recently extended an additional three years (through 12/2012), changes the tax code, offering an exception specifically targeted for home mortgage debt forgiveness. Minnesota homeowners need to know that there are MANY stipulations in the legislation.
You can view a copy of the fact sheet here.
The Center has also produced a number of additional fact sheets on:
- "Homeowner Rights During the Redemption Period";
- "After a Foreclosure: Understanding Judgements";
- "Making Home Affordable" and many others.
These facts sheets are available to the public and can be freely downloaded from the Center's website.The fact sheets can be found here and here.
They are also available in Spanish, here and here.