Taxes and a Home Loan Modification

Today, many homeowners are considering a modification to their home loan to avoid debt and, in some cases, foreclosure. With the possibility of forgiven debt becoming taxable income and other tax considerations affected by home loan modifications, it’s a good idea to have some facts before making a decision about a home loan modification.A home loan modification is negotiating a modification to your mortgage in order to avoid short sale or foreclosure. Modifications can be made in interest, or you can change your loan from an Adjustable Rate Mortgage to a fixed mortgage. You can modify with a reduction in principal or late fees. You can even extend the term of the loan. The options are dictated by individual circumstance.Prior

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