How will the expiration of the Mortgage Debt Relief Act of 2007 affect California Homeowners?

The Mortgage Debt Relief Act of 2007 is set to expire on December 31, 2013.  Congress ended its recent session without addressing the Mortgage Debt Relief Act of 2007’s looming expiration so it appears that another extension will not occur.  The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence that is incurred as a result of mortgage restructuring or debt forgiveness as a result of a short sale. While the Click for More →