KEY POINTS:
United States President George W. Bush has signed a measure to provide financial relief for homeowners facing foreclosure or in bankruptcy.
The bill gives a tax break to US homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. No taxes would be owed on the value of any debt forgiven or written off. Currently, such debt forgiveness is taxable income.
"When you're worried about making your payments, higher taxes are the last thing you need to worry about," Bush said.
The bill was in response to a mortgage crisis touched off this US spring by a blowup in high-priced home loans for risky borrowers.
- AP
