Bush Sets Treasury, HUD to Work on Loan Restructuring Issues
Aug 10, 2007
To facilitate writedowns, the president pledged to work with Congress to temporarily amend the tax code so homeowners are not hit with a large tax bill when a lender forgives $20,000 of the principal amount of the mortgage. Congress has to pass legislation to make this change. "When your home is losing value and your family is under stress, the last thing you need is to be hit with higher taxes," the president said in outlining his administration's efforts to help troubled subprime borrowers
