Are you wondering if a loan modification could be a solution to your unaffordable home loan?  If you are one of the millions of homeowners stuck in an adjustable rate loan or a sub prime high interest loan, there is hope.  Several recent laws and programs were put in place designed to offer assistance to borrowers just like you.  Due to severe home value depreciation and loss of equity, many of these loan modification programs allow for a reduction in your principle balance.  In the past, the homeowner would have been taxed for the cancelled amount as income.  But read on…

The Mortgage Forgiveness Debt Relief Act of 2007 was passed to address this issue.  This legislation generally allows taxpayers to exclude income from the discharge of debt on their principle residence.  Debt reduced through mortgage restructuring (loan modification) as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. 

This provision applies to debt forgiven in 2007, 2008 or 2009.  Up to $2 milion of forgiven debt thru a loan modification is eligible for this exclusion ($1 million if filing separately).  This exclusion only applies if related to a decline in the home’s value or the taxpayer’s financial condition.  Troubled borrowers seeking a loan modification that includes a principle reduction will generally not be liable for any income tax or issued a 1099 for the forgiven amount.  This is good news for homeowners seeking to obtain a loan modification that includes principle reduction so the loan will more accurately reflect the home’s current market value.

Now is the time to start learning about the loan modification process to determine if you may qualify for this relief.  Many of the recent laws and programs have built in timelines, so you need to act quickly so you don’t miss out on the billions of dollars of aid allocated to help distressed borrowers seeking a loan modification to save their home.  TIme if not on your side, you need to start now so you can have a fighting chance to save your home.

Home Edition Loan Modification Kit

An excellent source of loan modification information is The Complete Loan Modification Guide.  This is a low cost, easy to follow handbook that you can order and download right online.  The Complete Loan Modification Guide will provide you with everything you need to prepare a professional and acceptable loan modification application that your lender will review quickly.  You will receive all of the required loan modification forms, as well as step by step instructions on how to complete them properly.  Learn about your lenders guidelines so your loan modification application meet those guidelines for acceptance.  Order and download The Complete Loan Modification Guide today and get started on the road to financial security again.

If you would like more information about loan modifications, please visit us at:  http://www.myloanmodificationcenter.com