Link to Mortgage Debt Forgiveness Act

Here is a link on the Internal Revenue Service page which explains the Mortgage Debt Forgiveness Act passed December, 2007. The lender that forgives a portion of the debt owed on a mortgage will issue a 1099 to the homeowner. For example if you owe 300,000 and the property is sold for $250,000, the lender will issue to a mortgage holder a 1099 for the difference, their loss. In this case it would be $50,000. http://www.irs.gov/individuals/article/0,,id=179414,00.html [Read more]

Fannie Mae and Freddie Mac Sponsered Programs

This is a good sign that the banks are going to be communicating more with homeowners. Banks will be paid $800 per file to help homeowner’s who qualify rework some loans through loan modifications. The homeowner has to have decent income to qualify. The homeowner may be in pre-foreclosure stages. I believe one of the problems is the huge amount of files that the banks have on their hands. http://finance.yahoo.com/loans/article/106138/Relief-Starts-to-Trickle-to-Troubled-Homeowners

Hopefully, many homeowners may be able to contact the banks and many homeowners who have avoided communicating because they have given up may have a chance on saving their homes.