The Mortgage Forgiveness Debt Relief Act of 2007 helps American homeowners avoid foreclosure by protecting them from higher taxes when they refinance their home mortgages.

President George W. Bush signed it into law on December 20, 2007.

Here’s a snip from “Dubya:”

“When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes. So I’m working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on canceled mortgage debt.”

The Act creates a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive, according to WhiteHouse.gov.

For more on the Mortgage Forgiveness Debt Relief Act of 2007, including fact sheets and other important details, click here.