Here is another good reason to keep your tax records on file and in a safe place.

Housing Counseling agencies that are providing foreclosure prevention usually need to see your most recent tax return and will keep a copy on file for reporting purposes or to prove your income to your lender . If you are in this situation and unable to find your last 1040 tax return, it may interfere with your Housing Counselor’s ability to provide you with assistance.

Here are some ways to fix the problem:

The IRS suggests keeping copies of all basic tax records for up to 7 years. If your tax records have been lost or destroyed, or if you’ve never kept the originals, there is a way to obtain copies.

Submit Form 4506-T for a transcript of your tax filings. This is only a summary showing most line items from your original tax returns.

Form 4506 will get you a copy of your tax return, including copies of all documents submitted with your 1040.

Visit IRS.gov or call 1-800-829-1040 to obtain these forms. For more detailed information about keeping tax records, print or request a copy of Publication 552.

When storing tax records, keep them in a secure, fireproof box such as a safe or filing cabinet. It would also be wise to keep electronic copies. Scan and save your documents as PDFs or jpegs and keep them on your computer’s hard-drive or on a flash drive. Electronic documents are easy to find and print, and they allow you to keep your paper copies in storage.

It was about 5 months ago that oil prices set a record $147 per barrel. Today, they’re less than $45, thanks to reduced demand. Meanwhile, gas prices fell from a painful $4 a gallon to around $1.66 in the U.S. (And some analysts think they’re heading to one dollar per gallon.) Credit Counselors advise that energy prices should boost the economy in 2009 as opposed to crippling it in 2008. JPMorgan Chase economist James Glassman estimates that the drop in oil prices represents “a boost equivalent to a $350 billion stimulus.”

Falling faster than gas prices are mortgage rates. Rates for a 30-year, fixed-rate mortgage fell to an extremely low 5.19. That should help housing affordability and the ability of current homeowners to refinance their mortgages. Before refinancing your home, it is a good idea to pull your credit report to make sure there are no mistakes on it. And even more good news could be on the way if you don’t mind Uncle Sam borrowing billions more for yet another bailout: The Treasury Department is reportedly considering a plan to push mortgage rates as low as 4.5% for new homebuyers and, perhaps, even for current homeowners who want to refinance. Maybe there is some light to the end of this long, dark tunnel.

First of all, reverse mortgages are not meant for everyone and according to Housing Counselors, should not be used unless it’s a necessity.

Essentially, this loan is borrowed against your home’s equity and is paid out in a lump sum or in monthly installments to the homeowners. The amount of a reverse mortgage that a homeowner can qualify for depends on factors such as the age of the youngest homeowner (the older that person is, the more they will qualify for), and the home’s equity-value. A major problem that can arise while applying for a reverse mortgage is that both homeowners may not be over 62. Housing Counselors warn that there have been cases where the younger homeowner takes their name off the mortgage so that they can qualify for more money. This is not recommended because the younger homeowner may lose the home if the older owner dies.

Factors considered for a reverse mortgage include, you are 62 or older and have equity built up in your home. This type of loan is very costly and should only be used if you are home rich but cash poor or are struggling to meet your monthly expenses. It is not recommended that you take out a reverse mortgage for gifts or vacation. A reverse mortgage may be more necessary to help with the rising costs of food, drugs and other household expenses that according to a study taken by AARP, has contributed to a surge of bankruptcy filings by the elderly. This study found that from 1991 to 2007, there was an increase of filings equaling 125% for people aged 65-74 and 433% for people aged 75-84.

While reverse mortgages can help out certain people in certain situations, Housing Counselors advise to look into other options such as a home-equity loan before taking into account this very expensive type of loan.

During hard times, you may find yourself in a position where you may have to face possibly foreclosing on your home. Foreclosure prevention counselors advise that this has become a very common situation for many Americans these days and unfortunately, it has caused a new trend among scam-artists.

Beware of foreclosure rescue scams! There are many fraudulent organizations posing as legitimate foreclosure prevention organizations. They claim they can save your home and further claim they have successfully been helping clients for many years. In many cases, the homeowners who respond to these con artists usually end up losing their home, resulting in the con artist walking away and pocketing the equity.

Always use caution when searching for companies which claim to provide foreclosure assistance. Do not work with an agency who:

• Asks for an up-front fee before providing you with any services.
• Tells you to send a mortgage payment to them (you should never send payments to anyone other than your lender).
• Asks you to sign your house deed over to them.
• Is pushy or rushes you into filling out and signing loads of paperwork.
• Guarantees they can save your home before reviewing your situation.
• Cannot clearly explain the steps to be taken to save your home.

On the other hand, there are many agencies that can truly help you save your home. If you decide to go with a foreclosure prevention agency, housing counselors advise you to carefully research the company. Look for a reputable agency which does the following:

• Offers a free initial consultation to go over your unique situation.
• Takes the time to fully explain the process.
• Shows an honest success rate and does not claim to be 100% successful.
• Is registered with the Better Business Bureau and has a good record with them (click here to visit the Better Business Bureau).
Although it may be difficult to make sound decisions due to stress while facing a foreclosure, it is important to use extreme caution! Housing counselors advise that picking the right agency can make the difference between saving and losing your home.