It's a New Year with many great possibilities ahead! Especially in the housing market. Great news for people who have their homes listed or might have to list their home as a short sale, the Mortgage Debt Relief Act has been extended! It was supposed to expire December 31, 2012. The Act generally states that primary residence homeowners do not have to pay income tax on the amount of forgiven debt in a short sale or a foreclosure. If you are currently struggling to make your mortgage payments, you may qualify for a loan modification or be able to short sale your home. Always consult with a Certified Distressed Property Expert(CDPE) Realtor to guide you.