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How to Find Mortgage Relief in Today’s Economy

27 September 2012 2 Comments

Contrary to the seemingly hopeless situation you may find yourself in, there is always a way, provided there is a will, to divide and conquer a problem; even if that problem is paying your mortgage! There are all kinds of government programs and financial institutions out there to aid in debt recovery solutions. So, if your home is mortgaged or re-mortgaged and you are struggling to make payments, you might want to look into a few of these ways to make your life and your debt a bit more manageable.

There are options to take a look at provided to us by our government. From funding to tax exemption to cancellation of debt, programs are available to Americans to help them to stay in their homes. Millions of people a year are faced with the possibility of foreclosure. Through these government programs, they have been able to conquer debt and remain in good standing.

Something to look into if you have already been placed in foreclosure, filed bankruptcy or could use a little bit of debt restructuring is the Mortgage Debt Relief Act. This act, established in 2007, at times allows for a provision on taxes in some cases. Such debt, up to two million dollars, one million if you are single; becomes exempt from being taxable. The Mortgage Forgiveness Act also works by cancelling a debt. In this case, said debt would be considered to be taxable. This act was introduced by the IRS and qualifying remains subject to specific guidelines set forth by the government.

Another program is the online MHA or Making Home Affordable program. Introduced by the United States Department of Treasury, this program has aided millions of people. The MHA is a convenient online program and a free service to homeowners. Qualified homeowners can possibly reduce their current mortgage payments by refinancing with their current creditor or financial institution under new guidelines outlined by the MHA program. Go online and find out if you qualify!

Also on hand are the trusty debt relief programs offered up by debt relief companies willing to be paid by negotiating your debt. Watch these companies as many have turned out to be fraudulent in the past. Do some checking before signing on to a specific debt relief firm. Check to see how long they have been in business and research their credentials. A good debt relief company will be satisfied to earn their keep with the money they save you through negotiations, repayment plans and settlements.

Of course there are those private investors known as PDRS groups. Peoples Debt Relief Solutions focus on the purchase of secured notes on both residential and commercial properties. These groups do not loan money, they do however; work with home and business owners to make payments according to their current monthly income.

Dan is a financial blogger who frequently writes about financial topics and answers questions like what is covered with home insurance?

2 Comments »

  • Steve said:

    I think getting help in this situation is not as easy as the article implies. I know a couple of people who are trying to cope with these problem and their situation is just hopeless.

  • Rachel said:

    Since the economic crisis started more and more people have problems paying their loans and mortgages. One of my friends nearly lost is house but with the help of reverse mortgage companies he managed to solve his problem.