The Mortgage Forgiveness Debt Relief Act of 2007 helps American homeowners avoid foreclosure by protecting them from higher taxes when they refinance their home mortgages.

President George W. Bush signed it into law on December 20, 2007.

Here’s a snip from “Dubya:”

“When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes. So I’m working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on canceled mortgage debt.”

The Act creates a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive, according to WhiteHouse.gov.

For more on the Mortgage Forgiveness Debt Relief Act of 2007, including fact sheets and other important details, click here.

… this is certainly not one of them:

“An upstate woman is accused of setting her house on fire the night before it was to be foreclosed…. Deputies said [she] poured gasoline in the house and set the fire…. On the day of the fire, a deputy had posted a foreclosure lock-out notice on the door of the home.”

Of course, the individual is innocent until proven guilty in a court of law. However, homeowners enduring the foreclosure process are often so distressed that it overwhelms them mentally.

That’s because losing a home is simply financially and emotionally devastating.

The sad part is that now more than ever lenders and banks are willing to work with homeowners in foreclosure to resolve or “workout” their situations — it doesn’t have to go this far.

Help is literally just a few phone calls away and it is often free of charge. In fact, state and local governments — even Capitol Hill — are working harder to provide programs and solution to ensure that families remain in their homes.

If you’re reading this then get started today right here. Put out the foreclosure fire before it even starts … don’t start one.

Foreclosure.com is proud to announce its support of the “Foreclosure Assistance Center,” which is a first-of-its-kind cooperative effort between The City of West Palm Beach, Fla., and national organizations such as banks to create a resource that provides homeowners facing the loss of their properties with viable solutions.

Here’s a snip from Emelda Johnson from the the department of housing and community development via WPTV.com:

“The program we can up with anticipates all of the scenarios someone in trouble might experience and the various scenarios of getting them out of trouble.”

Those “troubles” could mean everything from divorce, adjustable rate mortgage interest rate increase, job loss, illness or any of the other unfortunate situations that can lead to foreclosure action.

Florida residents who require foreclosure help or need to avoid losing their homes should contact the center at (561) 822-1575 or stop in for a personal consultation at 464 Fern St. in West Palm Beach, Fla.

It is open from 9 a.m. to 5 p.m. daily and is FREE to the public. Distressed homeowners who seek assistance and don’t live in the area will be referred to other agencies.

Joe Lents of Boca Raton, Fla., apparently requested proof from Washington Mutual Inc. — the lending institution that claimed to own the promissory note to his home — that it was indeed the rightful mortgage owner when foreclosure proceedings were initiated.

Washington Mutual Inc. couldn’t come up with the proper paperwork, and Joe has been living in his $1.5 million home since 2002 without making a single mortgage payment, according to Tampa Bay Online.

Here’s a snip from Joe:

“If you’re going to take my house away from me, you better own the note.”

Apparently, short cuts when large “bundles” of mortgages were bought and sold from 2003 to 2006 resulted in more than a few clerical errors — the assignment of ownership wasn’t always properly completed.

And when the original lender no longer exists — more than 100 mortgage companies ceased operations in 2007 alone — unlucky homeowners can all of a sudden find themselves in very lucky situations.

Just ask Joe.

For those not fortunate enough to share these same circumstances (and the probability is low) feel free to take advantage of a free consultation about how to beat foreclosure right here.

Distressed homeowners facing foreclosure and in jeopardy of losing their homes could receive a little extra time to cure the mortgage defaults thanks to an initiative proposed by United States President George Bush and his administration, according to Yahoo!News.com.

Six participating banks of the Hope Now Alliance — Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., J.P. Morgan Chase and Co., Washington Mutual Inc. and Wells Fargo & Co — will delay the foreclosure process for their customers for an additional 30 days, using the extra time to try and make the mortgages more affordable.

Here’s the actual snip:

“Under the new program, six of the nation’s largest financial institutions said they will begin contacting homeowners who are 90 or more days overdue on their monthly mortgage payments. The homeowners will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders look for a way to make the mortgage more affordable. The new program will be available to the holders of all types of mortgages from prime to subprime and represents a widening of an initiative announced by President Bush in December that offers a freeze on subprime mortgage rates that are scheduled to reset to sharply higher rates for borrowers who qualify for the assistance.”

Homeowners in foreclosure are encouraged to call 1-888-995-HOPE for assistance and more information about the 30-day moratorium.

However, please consider that homeowners will not qualify for the bail out program if they:

• are already in bankruptcy
• have a foreclosure sales date less than 30 days away, or
• if the home had been purchased as an investment property or was not occupied at the current time.

For more information and additional foreclosure assistance remember that professional consultants can be reached right here.

Desperate times often call for desperate measures … just ask Vicki Gehlert of Port St. Lucie, Fla.

She moved into the house pictured above with her two dogs after a divorce in 2002. Shortly thereafter, Vicki lost a full-time job that helped her satisfy the monthly expenses.

Long story short, she’s fallen behind on her mortgage payments as a result of the turmoil (South Florida hurricanes only exacerbated the situation) and she’s asking for assistance in the form of donations to “Save Sunshine’s House.”

To learn more about Vicki’s story and to donate a few dollars to help her avoid foreclosure visit her Web site whenever you can right here.

This is a rather interesting public approach for a homeowner to stop foreclosure — most distressed homeowners live in denial right up until their properties are up on the auction blocks.

Put simply, foreclosure is a difficult situation to handle. It can ruin a person’s life in the short-term and damage his or her credit well into the future.

It’s for this reason the we always suggest contacting the lender the moment it becomes clear that a mortgage payment will be missed or unpaid altogether. Often times lenders will work with homeowners to resolve the situations and stave of foreclosure action.

In short, do yourself a favor and ask for help! Short of that — or a creative donation-based Web site — the options are bleak.

Losing a home to foreclosure is perhaps one of the most difficult life experiences to endure for those who have to go through it.

There are numerous reasons homeowners fall behind on their mortgage payments, from illness to unemployment to divorce. Regardless of the individual circumstances surrounding foreclosure, there is a collective feeling of defeat that affects virtually everyone in this unfortunate situation.

Sometimes that feeling is only made worse when homeowners realize after the fact that foreclosure could have been avoided. Indeed, most distressed homeowners wait until the last minute to seek assistance, which is the biggest and most common mistake individuals facing foreclosure can make.

So how do you save your home from foreclosure?

First, it’s critical that you contact your lender as soon as possible. Sometimes a deal can be structured to delay foreclosure proceedings, but it needs to be done sooner rather than later. Remember, lenders don’t want to foreclose on homes — it costs them a significant amount of money.

After you have contacted your lender, the next thing you should do is reach out to a trusted foreclosure specialist. These organizations often have programs that help you catch up on late mortgage payments without getting penalized — even if you are 90 days or more behind!

We actually work with a company that has knowledgeable and helpful foreclosure specialists located throughout the nation. This company has helped hundreds of homeowners save their homes from foreclosure, avoid bankruptcy, protect their credit and more.

Even better, you can receive a FREE consultation just by filling out this quick form.

So, if you find yourself in a foreclosure situation don’t wait until it’s too late to fix the problem. Be sure to act fast and ask around for assistance to protect your investment.

It’s the smartest way to make the best out of a bad situation.

New Mexico is the latest state to implement a free foreclosure hotline for residents who are in danger of losing their homes, according to KRQE.com.

The Association of Community Organizations for Reform Now (ACORN) — the largest community organization of low and moderate income families in the United States — is spearheading the initiative.

With more than 1,700 active foreclosures in 2006 (according to Foreclosure.com) — and bad subprime mortgage loans possibly exacerbating the situation — ACORN wants to ensure that families in New Mexico get all the necessary help to save their homes from bank repossession.

Here’s a snip from an ACORN spokesperson:

“We have home-loan counselors. They will sit and talk with you about your mortgage, what you can pay, what is reasonable for you to pay and still maintain your other bills, feed your family…. They will go represent you to the lender and say this is what we have, this is what we can do, will you work with us?”

New Mexico homeowners facing foreclosure should take advantage of this resource as soon as possible … it’s FREE foreclosure assistance.

Contact a counselor toll-free at the New Mexico foreclosure hotline at 866-67-ACORN (866-672-2676).

Research from the Joint Center for Housing Studies at Harvard University — via Coloradoan.com — offers two more important reasons to stop foreclosures and to keep families in their homes.

In no particular order:

1. Homeowners typically enjoy stronger family and neighborhood stability.
2. Children perform better in school and are more likely to participate in civic activities.

While these points seem obvious, it’s not uncommon for them to be overlooked. That’s because “bad credit” and other financial problems often take center stage early on in the foreclosure process.

Without a doubt, foreclosures devastate more than just personal bank accounts and credit reports — they affect countless families and neighborhoods nationwide now and in the future.

Fortunately, foreclosure assistance and advice is usually only a few phone calls away. Don’t be afraid to reach out to local agencies or non-profit housing organizations in the area for help as soon as possible.

It’s often a simple solution to a much larger and profound problem.

There are some helpful tips today in the Orange County Register for homeowners who are searching for ways to catch up on their mortgage payments and to avoid foreclosure.

Here’s the quick list:

• Talk to your lender as soon as possible
• Get financial counseling
• Consider selling before foreclosure is final

The overriding theme of the article, which was written with the help of industry experts, is to act fast.

We couldn’t agree more — the quicker a distressed homeowner reaches out for assistance, the more options he or she will have from which to choose.

And, if for some reason a resolution cannot be agreed upon to save the home, at least these homeowners will have more time to put their properties on the market with the hopes that buyers come along to bail them out.

Filing for bankruptcy is the absolute last option, as well as one of the worst.

Consider this:

“Filing for bankruptcy isn’t a good option. Bankruptcy will not only ruin your credit but, depending on whether you file Chapter 7 or Chapter 11, the lender may still be able to foreclose or the court may order the sale of your home.”

The article also touches on a non-conventional strategy called the short sale. Essentially, this means that the house is sold for less than the actual loan amount.

However, the lender must agree to the terms of the price beforehand and be willing to accept the discounted offer.

Lenders sometimes do this to keep foreclosures off their books and to ensure that more money is not lost while the home is wasting away on the market.

In short, when it comes to foreclosure there’s no silver bullet solution that cures all situations. Fortunately, there are programs, services and options available that help distressed homeowners keep the keys to their front doors.

Therefore, always remember that it is often a race against the clock — give yourself the time you need to arrive at the resolution that best fits your needs.

With more than 91,000 New Yorkers in danger of losing their homes to foreclosure by the end of 2008, Sen. Charles Schumer (D-N.Y.) is looking to put an end to the subprime loans that are causing the problems, according to a recent article on NYDailyNews.com.

In fact, an analysis by his office revealed that an estimated 1.8 million American families — including nearly 23,000 in New York City and 19,000 in Nassau and Suffolk counties — could face foreclosure within the next two years when their subprime loan rates increase.

Here’s a snip from Chuck:

“For thousands, the American dream of homeownership has turned into an un-American nightmare. Thousands of middle-income and lower-income New Yorkers were tricked into borrowing these loans, and they are loans designed to fail. The first step is making sure that borrowers are protected from these usurious lenders. It’s long past time that we ensure that American families are protected from loans that promise them the world and then bury them in debt.”

To address the problem, Schumer recommends a response on the federal level that includes:

• establishing a national regulatory system to target “rogue” mortgage lenders and brokers;
• eliminating “liar loans” by creating a suitability standard for borrowers;
• prohibiting prepayment penalties, stated-income loans and “pick a payment” gimmicks that coerce borrowers into signing higher loans than they cannot afford; and
• creating a state foreclosure prevention task force.

It’s important to note that bad loans are not the only factors that contribute to foreclosure increases. Illness, divorce, job loss and other personal issues often affect distressed homeowners and cause them to fall behind on mortgage payments.

Furthermore, not all subprime loans result in foreclosure.

Therefore, it’ll be interesting to see how the interests of homebuyers and lenders are both represented if and when tighter restrictions are implemented.

Stay tuned.

Carol Gilbert from the Goldseker Foundation has some great advice for distressed homeowners in Maryland — anywhere for that matter — in an article today in the Los Angeles Times.

Here’s a quote:

“Borrowers may think that they are delaying foreclosure by not calling the lender - the opposite is true. The longer a borrower waits, the faster foreclosure will proceed and the fewer options there are to slow or reverse it from happening.

Too often, homeowners who default on their mortgages wait until the last minute to seek foreclosure assistance. It’s a decision that in the long run comes back to haunt them.

In most cases, lenders, states and nonprofit organizations have programs in place that can stop foreclosure. That’s because no one — aside from opportunistic investors — ever really wins in foreclosure situations.

According to the article, one of the first steps to take is contacting a housing counselor. Reaching out to the lender to discuss possible options is also an important initial step.

The article offers a few resources for Maryland residents, including:

• Dial 311 (in Baltimore) to be connected to a free counselor at a HUD-approved nonprofit
• Call 888-995-HOPE (4673).
• Visit the St. Ambrose Housing Aid Center ((410) 366-8550) for free counseling

Whether it’s refinancing, deferring payments or relocating, options abound when it comes to avoiding bank repossession.

Inaction, however, should not be one of them.

When a homeowner falls behind on mortgage payments, the reality of a looming foreclosure filing and bank repossession can cause fear and desperation.

During these trying times, it’s not uncommon for some homeowners to make poor, uninformed decisions and fall victim to foreclosure rescue scams.

Unfortunately, once homeowners are in default and foreclosure proceedings begin it becomes a matter of public record. Armed with this information, crooks often approach these distressed homeowners with bogus or misleading “assistance that eventually make bad situations worse.

The Boston Herald recently highlighted such a scheme, which is “ripping through Boston’s poorest neighborhoods.

Here’s a snip:

“… a cottage industry of shady small-time speculators has sprung up to target these struggling homeowners…. One popular tactic: persuading a beleaguered homeowner faced with foreclosure to “temporarily sign over his home in exchange for financial assistance. You can guess the rest. Another ploy: offering to make some phone calls - to pull a few strings - on behalf of the homeowner with the lender. Of course, all that is needed is a few thousand dollars up front.

Fortunately, the new scam has caught the attention of the Attorney General, according to the article. And, the office has brought two rescue scammers to court and is exploring additional cases.

The Massachusetts example detailed above represents a small slice of this nationwide problem. With the increase in foreclosures across the board, state governments and local authorities are finding it harder and harder to crackdown on each and every rescue scam.

It’s critical that homeowners don’t fall into this trap. Therefore, anyone who sends fliers via mail or knocks on front doors talking about quick and harmless bailout offers should be considered suspicious.

And, always remember that viable resources and options do exist to avoid foreclosure. For starters, fill out this form to speak with a reliable professional.

Most important, however, is to remain as level-headed and as cool as possible.

Good help is out there … it’s just a matter of finding it before bad help finds you.

With 8,940 active foreclosures — the fifth highest total among the 50 states — the Ohio Department of Development has set aside $1 million to prevent foreclosures.

Loans are available on a first-come-first-served basis through the Columbus Housing Partnership and 11 other nonprofit agencies participating in the Ohio Foreclosure Prevention Initiative, according to the Columbus Business Journal.

The Columbus Housing Partnership Web site states that the private, nonprofit organization “provides quality, affordable housing and related services to low to moderate income households in Columbus and the surrounding area.