“Fiscal Cliff” Bill Contains Important Relief for Many Homeowners

As I mentioned a few weeks ago, the Mortgage Debt Relief Act was set to expire yesterday, but was renewed in the bill congress passed late last night…big news for sellers considering a short sale. It also included a revival of the tax deduction for mortgage insurance, which had lapsed after 2011, which is good news for FHA borrowers. The Wall Street Journal summarizes the changes here. They didn’t go after the mortgage interest deduction yet, but it sounds like that could still happen so we’ll keep tabs as things develop.