U.S. Rep. Patrick Meehan (R-7th) visited Suburban West on Friday, November 20th to provide an update on several important issues facing Congress in the coming months, including an extension on the Home Mortgage Debt Foregiveness Relief Act.
The Act has been an essential component of short sale negotiations over the past several years, as it forgives the mortgage principal that is reduced in loan modifications. Without an extension of the Act, borrowers who have had their mortgage principal reduced during a 2015 short sale would be forced to count the debt deduction as taxable income. Meehan, a member of the influential House Ways and Means Committee, said he feels Congress should extend the Act beyond the one year mark that has become the norm over the past several years. Without a multi-year or even permanent extension, he explained, there will be continued uncertainty among families who could be facing foreclosure without the possibility of a short sale.
During this introduction of the Congressman to nearly 40 SWRA members in attendance at the forum, NAR Federal Political Coordinator (FPC) Guy Matteo, thanked Meehan for his willingness to meet frequently with REALTORS both on Capitol Hill and in the 7th Congressional District, which includes most of Delaware county along with sections of Chester, Montgomery, Berks and Lancaster counties. Matteo also thanked Meehan for his recent support of an amendment that removed language from the federal transportation bill that would have used an extension of higher Fannie Mae and Freddie Mac guarantee fees to fund national transportation projects. "As REALTORS understand, each time guarantee fees are extended, increased and diverted for unrelated spendings, homeowners are charged more for their mortgages and taxpayers are exposed to additional risk for the long-term," Matteo said.
