NJ In On Request for Distressed Homeowner Tax Relief

NJ Signs Into National Letter to Congress

By: Brian Kordell

The New Jersey Attorney General, Jeffrey Chisea has signed into a national letter requesting Congress to extend the the expiration of the 2007 Federal Mortgage Debt Relief Act, which allows homeowners who have had mortgage debt forgiven after a foreclosure or short sale, or through loan modification to be excluded from the homeowners taxable income on their primary residence only. Currently, the taxpayer relief is only in effect til December 31st, 2012. Attorney General Chisea is among 42 others to sign the letter addressed to Congress.

With many homeowners across the nation benefiting from the huge National Mortgage Settlement awarded from the 5 largest mortgage servicing companies in the U.S., and while many banks are offering loan modification and debt relief for distressed homeowners.

The New Jersey Attorney General talked about the importance of extending the tax exclusion, to keep from deterring consumers who cannot afford an unexpected tax from participating in the settlement meant to help them.

Are you an underwater homeowner in New Jersey? You may not need a loan modification or debt relief. Another option out there for homeowners who are current on their mortgage but underwater on their home value is available, in the HARP refinance program.