Mortgage Loan Modification – Save Your Home from Foreclosure

We have a terrible problem in the housing market, affecting thirty million people in America. More and more homeowners are losing their jobs, or having their salaries reduced. Increasingly people are, through no fault of their own, falling late with their mortgage, credit cards or car payments. These people are in imminent danger of defaulting on their mortgage and seeing their house suffer foreclosure. But there is an answer, and many home-owners are not even aware of this as an option: it’s known as loan modification – sometimes known as loan mod.

Mortgage loan modification doesn’t involve refinancing, so there’s no credit check. It doesn’t entail debt consolidation. It’s renegotiating the existing loan to affect a reduction in interest rate and, under certain conditions, a lowering in loan principal as well. And it doesn’t involve increasing the term of the loan. A new, lower, payment is achieved which is affordable to the home-owner. Loan modification is a true win win for all parties concerned. For the home-owner it often means the difference between losing and keeping their property. As for the banks, it can signify no less than the difference between folding and staying solvent.

There is no reason why home owners can’t arrange their own mortgage loan modification by contacting their bank’s loss mitigation dept. But it is not advisable – the banks usually only offer a very slight reduction in interst rate, or no reduction at all. It’s far better to engage the services of a reputable loan modification firm, which employs its own team of dedicated loan modification attorneys, who do nothing other than meet with banks all day long and have the knowledge and experience to accomplish a telling reduction. Going it alone is similar to representing one self at a court of law – it’s seriously unadvisable. A reliable mortgage loan modification firm can achieve a 30% to 50% reduction in interest without increasing the length of the mortgage loan. It’s well worth the fee they charge to achieve this.