End of Bush-era tax cuts could result in sharp decline in short sales: VIDEO

The so-called Bush tax cuts are set to expire at the end of this year. With that expiration comes an end to the Mortgage Forgiveness Debt Relief Act, which makes short sales more appealing to banks than foreclosure. That could undercut the housing recovery, CNBC’s Diana Olick explained  on CNBC’s “The Kudlow Report.”

Also on the show, Meister, Seelig, & Fein’s Stephen Meister predicted that the end of the Bush-era tax cuts could would result in a sharp drop in short sales. Former Clinton advisor David Goodfriend, the American Enterprise Institute’s James Pethokoukis and the National Review’s Robert Costa also weighed in on the recovery. [CNBC]