Congress has approved an extension of the Act that, among other things, allows those going through foreclosure or a short sale of real estate to avoid paying federal income tax on forgiven debt. This is expected to have a stabilizing effect on the housing market. Closing attorney Rick Dunn welcomes the positive news as a benefit to the real estate industry and a chance to avoid the “Fiscal Cliff”. Borrowers can read more at http://ceb.com/lawalerts/mfdr.asp