The national housing crisis, and the various programs that have been implemented to correct it, have been well documented in the news and elsewhere. So much so that it’s seemingly impossible to escape.

Nothing is “reportedly” working. Not consistently, anyway, to stem the foreclosure tide and help distressed homeowners keep roofs over their heads.

But, alas, there is the story of Deborah Johnson in the Herald Tribune today, which details the “offer she couldn’t refuse” from her mortgage lender, JP Morgan Chase.

Behind on her mortgage for nearly two years, and seemingly headed for foreclosure, Johnson thought she had exhausted all options. But then Chase called her up one day and offered to forgive $100,000 of her debt, as well as give her $35,000 cash, to move out of her Sarasota, Fla., home.

The catch? All she had to do was agree to a short sale and help find a new buyer to live in her four-bedroom Lockwood Lakes home.

With cash in her pocket, credit salvaged and comfort knowing that she would not be pursued by creditors in the future, Johnson accepted the offer and is currently helping the bank show the home, which is on the market for $118,000, to prospective/buyers investors.

So what’s in it for CHASE, or any other lender in a similar situation? Company spokeswoman Nancy Norris explains the reasoning:

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The childhood home of Sen. John McCain’s wife, a three-acre spread in Phoenix, Ariz., is in default and headed to the foreclosure auction block on Aug. 15, 2011, according to The Arizona Republic.

It’s currently listed for $3 million in a short sale situation, which is $200,000 less than the new owner, an investor, paid the McCain’s for it back in 2006. However, the investor apparently sunk more money into the mansion, running the final bill up to $4.5 million.

The new renovations covered several upgrades, including an additional 4,000 sq. ft. of space. The home, which is where the McCain’s raised their children, boasts 11 bedrooms, 13 bathrooms, a “chef’s kitchen” and several outdoor bars, among other luxurious amenities.

McCain, who made an unsuccessful bid for President of the United States in 2008, moved to a penthouse “near 24th Street and Camelback Road” shortly before unloading their family home years ago. There is no telling if the couple would look to buy it back rather than see it go through the auction process.

Stay tuned.

When it comes to distressed real estate, a clean title absolutely essential.

Title searches become especially critical for short sale and foreclosure transactions because liens on a property transfer with property ownership. That means that you could be stuck with an outrageous bill even though the previous owner caused the lien to occur in the first place if you’re not careful.

Indeed, any encumbrances incurred by the previous owner could become the next owner’s problem. And if that next owner is you, you may be in for a very unwelcome shock.

The July 2011 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which familiarizes you with title searches and how to get them done, for free if you’re so inclined (and diligent), as painlessly as possible.

Your success as an investor depends on it.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

What is adverse possession? We touched on it more than a year ago when it happened on Washington. To read the article click here.