Mortgage Forgiveness Debt Relief Act?
scooby199 asked:
I heard there is a 2 year minimum for number of years property is owned in order to qualify for this relief. Is this true?
Alice
I heard there is a 2 year minimum for number of years property is owned in order to qualify for this relief. Is this true?
Alice
Tags: Debt Relief, Mortgage, Relief Act
January 3rd, 2009 at 12:54 am
The full text of the bill has not yet been released. When it is released the link below will have the full text. There is nothing in the summary about 2 years that I could find.
Be aware, this is NOT forgiveness of your debt to the lender. But rather, if the leader does decide to forgive (example: the house was mortgaged for $500K but is sold for $450K and the lender forgives you the $50K), then the forgiven amount ($50K in this example), is not taxed as income by the IRS.
January 5th, 2009 at 6:04 am
This appears to be true. The only reference I can find in regards to 2 years is that the home must be your primary residence - as defined by the IRS, a primary residence is a home that you must have lived in for an aggregate of 2 years in the last 5 years.
It’s difficult to interpret, but yes, it says you need to have lived in the home for 2 years to make the home qualify as your primary residence. In turn, a home must be your “primary residence” to qualify for the Mortgage Forgiveness Debt Relief Act.