Obama is offering economic relief to millions of home owners with his Foreclosure Plan as part of his economic stimulus package. The plan works on several levels.

To amend the Internal Revenue Code of 1986 to exclude from gross income of individual taxpayers discharges of indebtedness attributable to certain forgiven residential mortgage obligations.

If you miss mortgage payments, the lender can decide to begin the foreclosure process.

There are many reasons homeowners face difficulty in making mortgage payments: unexpected expenses, loss of overtime, unemployment, overspending, illness/injury, disability, death, marriage, childrearing, divorce, education, and relocation.

Are you having trouble keeping up with your mortgage payments? Have you received a notice of default from your lender?

A Loan Mortgage Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.  Through Loan Modification, even the interest rate and payment amount can be negotiated and adjusted. QUESTION 1 – In utilizing the Mortgage Loan Modification option to bring a mortgage loan current, can the mortgagee include all fees and corporate advances? ANSWER – Mortgagee Letter 00-05, page 21, paragraph F, “Allowable Provisions” states: “All or a portion of the PITI arrearage (principle, interest, Taxes and Insurance) may [...]