Sean Keene Salem/Keizer Realtor

The Oregon attorney general's office is warning homeowners facing foreclosure about offers to modify their mortgage loan for a fee.

State officials say some companies charge fees for services that homeowners can get for free by visiting a nonprofit counselor or by talking directly with their lender.

Loan modification companies have been targeting homeowners in Oregon through fliers, direct mail and phone calls.

Typically, the companies charge a fee to negotiate a change in the borrower's loan, such as deferred payments.

But most homeowners can get the same result for no charge from a nonprofit counselor or by dealing directly with their lender.

Tax Provisions

• $8,000 first-time home buyer, true tax credit (no repayment) for the purchase of a principle residence between January 1 and December 1, 2009. Recaptured if home is sold within three years. Removes the restriction on the use of tax credit proceeds with Housing Finance Agency-issued tax exempt mortgage revenue bonds.
• Short-term gap financing for Low Income Housing Tax Credit (LIHTC) projects:

1. Provision allowing states to turn in portion of 2009 LIHTC allocations for cash.

2. Special appropriation of $2 billion in HOME funds.

• Up to a ten-year deferral of tax from business debt canceled as part of a repurchase or restructuring.
• 5-year carryback of 2008 net operating losses for businesses with gross receipts of less than $15 million (three year average).
• Extension of enhanced bonus depreciation.
• Extension of increased small business expensing.
• Enhancements to the section 25C program for energy efficiency remodeling improvements to existing homes.
• One-year patch of the Alternative Minimum Tax.
• Increase New Markets Tax Credit allocating authority for 2008 and 2009.
• Delays for one year the start of 3% government contractor withholding requirement.

Appropriations Provisions

• $2 billion for full year payments to owners of Section 8 project based rental assistance properties.
• $2.25 billion through HOME program and Low Income Housing Tax Credit program to fill financing gaps.
• $1 billion for CDBG.
• $2 billion for Neighborhood stabilization program.
• $1.5 billion for homelessness prevention activities (help with rents, etc).
• $250 million for energy retrofitting and green investments in HUD assisted projects.
• $1 billion for Section 502 direct loans under the Rural Housing Service.
• $10.4 billion for Section 502 guaranteed loans under the Rural Housing Service.
• $27.5 billion for highway spending.

Other Key Provision

• Increases in FHA, Fannie Mae and Freddie Mac loan limits to 2008 levels.