Bush Signs off on a Bill that Gives Relief to Struggling Homeowners

President Bush announced today that he signed into law a bill that will waive taxes for many homeowners that must restructure their mortgages as they face foreclosure.

The previous law stated that if a borrower goes into foreclosure or negotiates a lower settlement with the lender the lost money was then reported on your taxes as income. The new law erases the old tax bill that many of these homeowners would face to ease burden on many of the homeowners that are facing this problem today. As many as 1.8 million mortgages are due to reset to sharply higher rates next year. The Bush administration has encouraged lenders to try to ease those terms where they can.

“The provision will increase the incentive for borrowers and lenders to work together to refinance loans,” Bush said at a signing ceremony, “and it will allow American families to secure lower mortgage payments without facing higher taxes.”

To read more about Bush signs bill giving struggling homeowners relief head on over to Reuters.