Why Mortgage Debt Forgiveness Extended?

Bluff Park, Long Beach, CA

The "fiscal cliff" deal reached by Congress on last Monday has two favorable provisions for the real estate market.

1. The Mortgage Debt Forgiveness Act of 2007 was extended through 2013, and the ability for borrowers to deduct their mortgage insurance premiums was extended through the end of the year as well.

2. Congress left alone the mortgage interest deduction, although some limitation on this deduction will likely be revisited later this year.