Just when we thought the housing market was stabilizing, the Mortgage Foreclosure Debt Forgiveness Act ended. To date, the act has not been extended, which could lead to a few notable changes in both the single-family and multi-family markets. Before 2007, a mortgage owner could receive a break on their loan as long as that forgiven debt was taxed. When the Mortgage Foreclosure Debt Forgiveness Act passed that year, it eliminated the tax on forgiven debt, allowing more cash to stay within the household. Homeowners were able to get back on their feet and into a rental—or even another house–more quickly. In January 2014, the Mortgage Foreclosure Debt Forgiveness Act came to an end.  According to the National Association of Realtors, reinstating tax on forgiven debts may affect many of nearly 10 million Americans with underwater properties; currently, 14.5 percent of homes in the US are still in negative equity, reports the National Association of Attorneys General. Homeowners with underwater properties will be dissuaded from short sales and other measures of foreclosure prevention since they often don’t have the means to pay the difference between the mortgage cost and the home’s current value. They likely unable to pay high taxes on forgiven debts, either. Homeowners may still qualify for an insolvency exclusion but it’s a tedious route The result: more foreclosures. RealtyTrac reports that more than 1.2 million properties throughout the nation are in some stage of foreclosure. States such as Delaware, Maryland, and Connecticut were inundated with distressed properties during the recession and they will continue to see high numbers of bank repossessions. With fewer assistance programs in place, these homeowners will continue to enter the rental market in numbers higher than previously expected. The continued flow of tenants may keep vacancy rates...