Yesterday evening, Congress reached a settlement in the on-going fiscal cliff negotiations, with a big success for real estate. The Mortgage Forgiveness Debt Relief Act has been extended for another year. As quoted from the California Association of Realtors (C.A.R.), “the measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction) or foreclosure”. To read the full article, please continue to the C.A.R. news release.