After doing what blueno suggested I did have to reboot. I then had to provide my password lots of times when I logged in. That still didn't work so I logged out of my iCloud account in Message and logged back in, repaired, and it worked!
This is what I did:
1) Open Key Chain Access ( go to Applications>Utilities)
2) Select Login at the top left side under Keychains
3) Select All Items on the lower left side under Category
4) Search for entries of IDS.
5) Highlight and delete all entries that has IDS.
6) Search for entries of FaceTime
7) Highlight and delete all entries of FaceTime
8) Search for entries of Messages (I also found entries containing Message (singular, not plural), but didn't delete these.)
9) Highlight and delete all entries of Messages
10) Reboot!
11) Log back in and when requested log back into iCloud account (I got asked for the password multiple times)
12) Log out of iCloud account in iMessage (Not sure if this is needed)
13) Log back into iCloud account in iMessage.
14) On iPhone in Settings/Messages/Text Message Forwarding turn off forwarding to my iMac.
15) Turn Text Message Forwarding back on for my iMac (re-pairs and I entered the new number)
16) Could send text messages from my iMac!!!!!