The bill, which is expected to go to the Senate floor on Thursday, includes a new standard property tax deduction of $1,000 for couples and $500 for individuals that will benefit 28.3 million tax filers who do not itemize deductions on their annual returns.
The bill also includes $10 billion in tax-exempt bonds for local housing agencies to refinance subprime loans and provide new mortgages for first-time home buyers, $4 billion in grants for local governments to buy foreclosed properties and $100 million to expand counseling for homeowners at risk of defaulting on their loans.
In addition, it would give a $7,000 tax credit to purchasers of foreclosed homes and would provide a new tax break for struggling home builders, allowing them to claim current losses against taxes paid in earlier, more profitable years.
The problem is that one of the best and most helpful provisions of the bill has been stripped out. Specifically, the provision that allows a bankruptcy judge to adjust the amount of a mortgage to take into account the actual value of the house has been nixed. Senator Durbin is going to offer it from the floor, and we need you to call your senators and urge them to support the Durbin amendment. This will be relief for thousands of homeowners who have negative equity in their homes.
Senator Klobuchar
302 Hart Office Building
Washington, DC 20510
phone: 202-224-3244
fax: 202-228-2186
Senator Coleman
320 Senate Hart Office Building
Washington, DC 20510
Main: 202-224-5641
Fax: 202-224-1152
Scheduling: 202-228-1503
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