For those of you following the progress of California Senate Bill 401, the Governor signed it yesterday, which means that mortgage debt forgiveness for the California taxpayer is now more in line with the Federal relief act. "SB 401 extends the law providing mortgage debt forgiveness to homeowners who have already lost their homes due to declining home prices and cannot afford to pay thousands of dollars in taxes because the mortgage company forgave the remainder of the loan. This means that Californians who have sold their homes as short sales are allowed to exclude from taxable income the amount that was still owed to the mortgage company. The legislation, which increases the amount of mortgage debt forgiveness available, also applies to homeowners who have made loan modifications in 2009."
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Posted by: Home Owner Loans | April 22, 2010 at 02:57 AM