IRS expands eligibility under Mortgage Debt Relief Act

IRS: The notice provides guidance on the applicability of section 108(a)(1)(E)(ii) to the Federal Housing Finance Agency‘s PRMP or HAMP programs. The notice concludes that if a mortgage servicer sends a borrower-homeowner a notice in conjunction with a written trial period plan or opt-out letter under PRMP or HAMP prior to January 1, 2017; the borrower-homeowner satisfies the trial period terms and conditions; and a permanent modification of the qualified principal residence indebtedness occurs on or after January 1, 2017, the discharge of indebtedness meets the requirements of section 108(a)(1)(E)(ii). (more…)