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| Mortgage Forgiveness Act Latest NewsBy Realty World Acclaim Congress passed an extension of the Mortgage Forgiveness Debt Relief Act as part of tax bill H.R. 8. This act exempts struggling homeowners from paying taxes on debt forgiven in a short sale, foreclosure, or loan modification. By Nevada Short Sale Experts Mortgage Forgiveness Debt Relief Act Has Been Extended Until December 2013 | ||||||||||||||||||||||