By Kenneth R. Harney | Washington Post Writers Group
Congress is back from its summer vacation, so the burning financial question on thousands of homeowners’ minds right now is this: Are you guys finally going to help out consumers who are underwater on their mortgages, many of whom face crushing federal tax bills if they accept — or have already accepted — principal reductions by their lenders?
This question is especially sensitive in the wake of the $16.65-billion toxic loans settlement reached last month by Bank of America and the Justice Department. Roughly $7 billion of the deal is earmarked for direct borrower relief, and a large chunk of that is expected to involve principal write-downs for underwater owners. Earlier settlements with JPMorgan Chase and Citigroup also included debt reductions.
