Santa Comes to Homeowners in Foreclosure - Investors are Visited by the Grinch

President Bush signed legislation yesterday removing the 1099 Forgiveness of Debt issue hanging over the heads of homeowners in foreclosure. Previously if a homeowner was foreclosed on, or they did a short sale, the lender could issue a 1099 Forgiveness of Debt. This essentially said that the lender was forgiving the remaining debt that the homeowner owed. This change does not cover investment properties!

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