On January 1, 2013, Congress passed the American Taxpayer Relief Act. Of direct concern to title insurance agents doing business in the arena of short sale transactions is the fact that the the bill also contained an important extension of the Mortgage Debt Relief Act (MDRA) of 2007, which NAILTA supported and advocated for. The extension of the MDRA until December 31, 2013, permits troubled homeowners considering short sales to avoid income tax on the forgiven deficiency. Had the bill not been extended, the advantages of the short sale option would have all but disappeared. Currently, short sale transactions make up approximately 30% of all pending sales in the United States.
We want to thank NAILTA’s Policy and Legislative Affairs Committee (PLA) for their hard work in advocating these concerns to Congress and helping to get the bill into the fiscal cliff negotiations.
Well done, NAILTA!
Click here for a copy of our President’s Memorandum on the subject. The memo provides our members with some valuable information concerning the fiscal cliff bill for small businesses.