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Brown to Call for Tax Relief for Mortgage Forgiveness
YOUNGSTOWN, Ohio -- U.S. Sen. Sherrod Brown will come here today to call for immediate congressional action to reverse a tax increase imposed on homeowners Jan. 1.
Brown will appear at Catholic Charities this morning with Thomas Williams, who recently ended his term as president of the Ohio Association of Realtors, and Hattie Wilkins, identified in the media advisory as a Mahoning Valley homeowner at risk of the tax increase. The advisory blames Senate Republicans for failing to take up legislation last year that would have relieved, for one year, the requirement for homeowners to pay taxes on mortgage debt forgiveness resulting from mortgage modifications, or short sales. Without the change, principal reductions that homeowners receive on their loans through mortgage modifications or short sales will be treated as income by the Internal Revenue Service.
Wilkins, laid off from Delphi, fell behind on her mortgage and was forced to begin the foreclosure process, according to Brown's office. While her bank finally agreed to forgive the $35,000 she still owed, Wilkins now faces a tax increase unless Brown’s bill, the Mortgage Forgiveness Tax Relief Act, passes.
Williams, a realtor with Northwood Realty Services, will discuss how Brown’s bill is a vital tool in helping Ohioans keep their homes and stay out of foreclosure.
Ohio Attorney General Mike DeWine has joined 41 other state attorney generals in calling for passage of the legislation, Brown's office noted.
Published by The Business Journal, Youngstown, Ohio.
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