King Asks Congress For Mortgage Tax Relief

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New Mexico Attorney General Gary King is urging Congress to continue tax relief for financially troubled homeowners who have part of their mortgage debt forgiven by a lender.  King and other state attorneys general sent a letter Tuesday asking congressional leaders to extend a tax provision that will expire at the end of December.

Under a 2007 law, homeowners don't have pay income taxes on mortgage debt that's canceled or forgiven because of a foreclosure, a loan restructuring or when the lender agrees to a short sale at a price less than the amount owed on a house.

The attorneys general said the tax break helps homeowners struggling to save their houses or recover financially after losing their homes.

Copyright 2012 The Associated Press.