Illinois Attorney General: Extend tax relief to distressed homeowners

Illinois Attorney General Lisa Madigan has joined with 41 other attorneys general from around the country urging Congress to extend tax relief on mortgage forgiveness. Without an extension, the federal Mortgage Debt Relief Act will expire on Dec. 31, 2012, forcing families to pay taxes on the mortgage debt that is forgiven as a result of a loan modification, short sale, or foreclosure.

“Failure to extend this tax relief would hurt the very families we set out to help in the national foreclosure settlement,” Madigan said in a news release. “We need to do everything we can to encourage—not deter—struggling homeowners to seek help to stay in their homes.”

REALTORS® have also spoken out in favor of extending the tax relief. The National Association of REALTORS® (NAR) has issued a Call to Action to its members, urging them to contact Congress and tell them to keep the housing recovery on track by extending the tax relief.

“Over a quarter of all transactions still involve distressed properties. That is why you must take action now,” NAR said. “Homeowners shouldn’t be forced to pay a tax on money they’ve already lost with cash they never received.”

This entry was posted in Government Affairs, Housing Market, Uncategorized by Stephanie Sievers. Bookmark the permalink.

About Stephanie Sievers

Stephanie Sievers is Senior Editor for the Illinois Association of REALTORS®. She serves as Senior Editor for IAR publications including the Illinois REALTOR® magazine and all other IAR publications. She is responsible for developing content for the Illinois REALTOR® Weekly Connection e-newsletter, coordinates the IAR Twitter account content at ILREALTOR and plans and develops content for videos. She assists in developing and writing content for the IAR blog. She also is involved in researching and drafting news releases and coordinates the news media distribution database and newsclips reports for the Association. She also assists in IAR spokesperson training seminars and is involved in development of association briefing materials on issues. She assists with the housing statistics program and reports.

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