Mortgage advice.

[JayhawkSD]

12. Be cautious here.

Some of the processes described can damage your credit for many years, expose you to major tax liabilities, and involve a risk of being charged with fraud if they are not done very carefully.

Things like, "not in you bank account because they request the last two to three months of bank statements," can involve fraudulent reporting of assets, and if you are engaging in a federal program can get you in huge problems.

If your mortgage is reduced the IRS regards that as "debt forgiven" which is considered to be income and is subject to income tax, all of it taxable in the single year in which the transaction occurred. There are ways around that in some cases, but you have to know precisely what you are doing.

Not paying your mortgage will go on your credit report, and money stashed under your mattress to pay it after the fact will not restore your credit report.

Do not take advice from a lender, nor from well meaning friends. Hire a financial consultant who is being paid by you to give you advice and who has no financial interest other than your well being as his client. It will cost you the amount of his fee, but it could save you a bundle and could even keep you out of jail.