Cummings, O’Malley, and Maryland Democrats Support the Mortgage Forgiveness Tax Relief Act

Baltimore, MD – December 20, 2013 – (RealEstateRama) — Today, Congressman Elijah E. Cummings (MD-07) was joined by Governor Martin O’Malley, and Congressmembers Steny Hoyer, Chris Van Hollen, C.A. Dutch Ruppersberger, Donna Edwards, John Sarbanes, and John Delaney on a letter to the leadership of the House Ways and Means Committee and the Senate Finance Committee expressing support for the Mortgage Forgiveness Tax Relief Act (S.1187; H.R.2788; H.R.2994).  These bills would extend protections set to expire on January 1 that enable homeowners to negotiate a resolution with their lenders on their underwater mortgage loans without the threat of a large tax bill.

“Congress should be doing everything in its power to help hardworking families still struggling to make ends meet as we recover from the recession,” said Congressman Cummings. “The Mortgage Forgiveness Tax Relief Act would renew existing protections that ensure struggling homeowners who receive the mortgage modifications they so desperately need are not taxed for these modifications. Renewal of these protections is absolutely critical.”

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“Extending the Mortgage Forgiveness Tax Relief Act will go a long way toward mitigating the long-term effects of foreclosure on hardworking families,” said Governor O’Malley. “While Maryland has passed what the Washington Post called some of the most ‘sweeping’ foreclosure reforms in America, we still have much more work to do to protect the dignity of every home. That’s why we must exercise every possible option we have to help families get back on their feet again and foster strong, growing communities in Maryland and across the nation.”

“The housing market in Maryland was hit hard by the economic recession, especially in Prince George’s County,” stated Congressman Hoyer. “We ought to do everything we can to assist struggling homeowners as our economy continues to recover, and extending these homeowner protections beyond January 1 would provide important relief to families here in Maryland and across the country.”

“While our economy is improving, millions of Americans are still struggling to make ends meet,” said Van Hollen. “We should be helping people get on track with their mortgages, not whacking them with a huge tax bill when they’re down. Renewing these protections will go a long way to help families who are working to keep their homes.”

“Struggling homeowners should not be penalized for doing the right thing by seeking a resolution with their lender before they reach foreclosure,” Congressman Ruppersberger said. “We must do everything we can to help families stay in their homes and off the streets and renewing these protections will go a long way toward that goal.”

“There are many homeowners in my district and across the country who continue to struggle with underwater mortgages,” said Congresswoman Donna F. Edwards.  “It is critical that Congress extend the Mortgage Forgiveness Tax Relief Act to ensure that they don’t face the additional financial burden of a large tax bill as a result of a loan modification.”

“Middle class families who are struggling to stay in their homes shouldn’t have to shoulder the added financial burden of a hefty tax bill,” said Congressman Sarbanes. “It makes no sense to pursue mortgage modification policies and then tax homeowners because they have successfully reached a mutually beneficial agreement with their bank.”

“We all understand that the progress of the economic recovery has been too slow and the results uneven,” said Congressman Delaney. “That’s why it’s so essential that we do everything we can to allow more middle class Marylanders to maintain their hold on the American Dream.  I thank Congressman Cummings for his leadership on this issue and his work to help struggling homeowners.”

“Strong communities are built on the foundation of ensuring that everyone has a safe, affordable place to call home, and the Mortgage Forgiveness Tax Relief Act would continue to give us the tools we need to help families who are struggling as we recover from this recession,” said Lt. Governor Anthony Brown. “We’re always going to stand with Marylanders who are facing tough economic challenges, and never stop fighting for a better Maryland where neighbors continue to help neighbors, especially in their time of need. Our Congressional delegation are great partners in this effort, and I know that with their efforts and advocacy, we can make this legislation a reality.”

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