Mortgage Debt Forgiveness Bill heads to governor

Assembly Bill 99, also known as the Mortgage Debt Forgiveness Bill, was approved by the Senate on Tuesday and is headed to Gov. Jerry Brown’s desk to sign into law.

Assemblyman Henry Perea, D-Fresno, introduced the bill in January to extend state tax relief on mortgage debt for one more year. It would spare California homeowners from paying taxes on their mortgage debt after a short sale or principal loan modification.

Homeowners whose debt was forgiven by their lender before Jan. 1, 2015, could qualify.

This story was originally published September 3, 2015 at 4:24 PM with the headline "Mortgage Debt Forgiveness Bill heads to governor."