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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

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