Struggling Kentucky Homeowners will benefit from a one-year tax relief extension recently approved by Congress. I was among 43 Attorneys General who last November urged Congressional leaders to pass critical legislation to extend the Mortgage Forgiveness Debt Relief Act of 2007 prior to its Jan. 1, 2013 expiration. With the extension, borrowers who receive debt relief such as loan principal reduction or short sale loan forgiveness will not be required to pay taxes on the loan amount forgiven.
This tax benefit is a victory for homeowners who have mortgage debt forgiven and is critical to those who are seeking benefits under the National Mortgage Settlement.
I'm looking forward to joining Gov. Beshear and other state leaders in Lexington on Monday, Jan. 7 to showcase what can happen to foreclosed properties when government and the private sector work together. I am proud that a significant portion of the $58 million Kentucky received under the National Mortgage Foreclosure Settlement has helped revitalize Kentucky neighborhoods and has helped provide a second chance to families who have lost their homes.
Securing relief for Kentucky homeowners affected by the mortgage foreclosure meltdown is one of our many accomplishments from 2012. I hope you'll take a moment to see all that we achieved last year for you and your family.
In other news, I am grateful to the attorneys and victim advocates in my Office of Criminal Appeals who fight every day to ensure that justice is upheld and that the voices of Kentucky's crime victims are heard. An Appeals Court ruling this week in the Michael Carneal case is a testament to their hard work and dedication.
Finally, my congratulations to the Louisville Cardinal 2013 Sugar Bowl Champions! Coach Strong and his team showed the Florida Gators and the nation the value of hard work and never giving up.