Heres why the filibuster reform passed today in the U.S. Senate could help homeowners in Myrtle beach and other areas with many underwater mortgages - if its not too late: Ill leave it to the talking heads to determine just what the filibuster reform - now only a bare majority is required to approve judicial and executive branch nominees - means politically. (Liberals think it is a great thing, conservatives are screaming bloody murder. If the GOP controlled the Senate instead of the Democrats, the complaints would have been precisely the opposite of what you are hearing today.) On a practical note, Mel Watt of Charlotte will now become head of the Federal Housing Finance Agency. That means the holdover Bush appointee who has been much more conservative in his approach about how to help homeowners harmed by the real estate bust will be replaced by Watt - who has plans to be much more aggressive. Part of his plan is to do more to help homeowners who owe more on their mortgages than their homes are worth. He has wanted to expand a mortgage modification program to touch many more people than current policy has allowed over the past few years. Filibuster reform means Watt will be able to implement those plans. Theres a caveat, though. (Isnt there always a caveat?) The 2007 act that allowed people to receive mortgage modifications - meaning a forgiveness of part of their mortgage total - expires at the end of this year. That means if a homeowner takes a modification next year if Watt expands the program, they might get hit with a big tax because it would be considered taxable income then. Under the act, it is not taxable income in 2013. (The piece below touches on that a bit.) Conservative and liberal policy wonks and economists disagree over whether such a move would be a good move for the overall economy and the real estate market. (Dont they always disagree, though?) Either way, filibuster reform that has much of the media focused on its impact on judicial nominations, particularly to the powerful D.C. Court of Appeals, will also have a tangible impact on many homeowners. That important development should not be lost in the rhetoric.
Posted on: Fri, 22 Nov 2013 02:14:29 +0000
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