King Favors Extending Mortgage Forgiveness Relief
New Mexico Attorney General Gary King is urging Congress to continue tax relief for financially troubled homeowners who have part of their mortgage debt forgiven by a lender.
King and other state attorneys general sent a letter Tuesday asking congressional leaders to extend a tax provision that will expire at the end of December.
Under a 2007 law, homeowners don't have pay income taxes on mortgage debt that's canceled or forgiven because of a foreclosure, a loan restructuring or when the lender agrees to a short sale at a price less than the amount owed on a house.
The attorneys general said the tax break helps homeowners struggling to save their houses or recover financially after losing their homes.