This is something that I knew was coming. We are still in a housing crisis. Congress is not even thinking about how this may affect the homeowner. Many regions housing is still in recovery. The homeowner watch the news and hears that the market it up, but in certain areas this is not true. Housing values are just staggant and values have gone nowhere.
The market is up the market is down and they hang on to a property that has lost maybe 40% of its value and it will take years for a come back. They will be unable to refinance and in the next 12 to 18 months their equity loan or arm loan is going to reset. Example are those who purchased at the height of the market from 2005 to 2008. In some cases the homeowner is holding a second loan that a balloon payment will be due. This is a serious situation should this not be extended.
Other aspects of this law are outlined in the article.
From the Washington Post read Homeowners Tax Benefits To Expire 12/31/2013