Governor Jerry Brown formalized AB 1393 which provides Mortgage Debt Forgiveness for Californian’s that have experienced a short sale before January 01, 2014.
So what? This is fantastic news for struggling homeowners that are now free and clear of getting slapped with additional taxes for completing a short sale…yes…that “shortage” of what you owed and what was actually paid…is taxable income!
AB 1393 removes this liability freeing you and your family members from the severe taxation that many Americans must pay in other states.
The federal government has a similar program in the Mortgage Relief Debt Forgiveness Act of 2007, however, it has expired in December 2013. The is federal relief is expected to see an additional year or 2 added to it as we get closer to election time.
