The Settlement Agreement does not provide tax relief for homeowners for income arising from principal forgiveness. Whether a homeowner will be required to pay any federal, state, local, or other tax on principal forgiveness is dependent upon each homeowner’s individual circumstances. Homeowners can find useful information at www.irs.gov.
The Monitor cannot represent or provide legal or tax advice to individual homeowners. Homeowners considering mortgage modifications or other relief under the Settlement Agreement may wish to obtain legal or tax advice from a lawyer or tax advisor. Homeowners who desire such assistance but who do not know where to obtain it or cannot afford it may view these additional resources.
IRS Low Income Taxpayer Clinic Map
Legal Services Corporation
Homeowner Protection Program