Senators Heller, Stabenow Introduce Bipartisan Bill to Eliminate Tax that Hits Underwater Homeowners

Washington DC – June 19, 2013 – (RealEstateRama) — U.S. Senators Dean Heller (R-NV) and Debbie Stabenow (D-MI) today introduced the Mortgage Forgiveness Tax Relief Act to ensure that underwater homeowners, those who owe more on their mortgages than their homes are now worth, would not be hit with additional income tax if a portion of their mortgage is forgiven. Without the Stabenow-Heller legislation, homeowners will be required to pay these additional taxes when they refinance or sell their homes in what are commonly called “short sales.”