Paulson Comments On Mortgage Debt Forgiveness Bill
The US Treasury Department on Tuesday released a statement from Treasury Secretary
Henry M. Paulson, commenting on the passage of legislation that would provide
temporary tax relief for homeowners facing increased taxes due to forgiven mortgage
debt. Speaking in light of the legislation, which won passage earlier this month,
Paulson stated: "I thank both the Senate and the House for their quick passage of this
important piece of legislation. Homeowners who restructure their mortgages to
avoid foreclosure should not be hit with a tax bill as a result. This legislation
will temporarily exclude homeowners who have restructured their mortgage loans
from having to paying taxes on the mortgage debt forgiven." He continued: "This legislation is one piece of a larger plan the President has put
forward to help able homeowners avoid foreclosure. I'm also eager to see final
Congressional action on the other pieces, including GSE and FHA reform and allowing
state and local authorities more tax-exempt bond authority to help homeowners
refinance their existing loans." "Preventing avoidable foreclosures will reduce the impact of the housing
slowdown on homeowners, our communities, and our economy," he concluded. .
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