Good News: Bush Signs Bill to Protect Homeowners from Higher Taxes

On December 20, 2007, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which will help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages. This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed. Read the full press realease here: http://www.whitehouse.gov/news/releases/2007/12/20071220-3.html and learn more facts about the Act here: http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html