A loan modification could be the answer many homeowners need to keep their home, even more so if you are a homeowner who does not qualify for refinancing and do not meet the requirements for Federal Loans using the “Making Home Affordable” plan. A home loan modification though, may be what you need, and your only option, to keeping your home.

Banks and mortgage lenders all across the country are approving more and more home loan modification applications as a solution to prevent foreclosures, mortgage defaults, and to keep people in their homes. These modification options available now, allow you to have a fresh start of sorts by changing the terms, rates, or conditions of your current home mortgage to an affordable level. Any payments you have that may be missed or past due can be added to the loans total, as well as any fees or penalties you owe. Also keep in mind that a home loan modification does not affect your credit in any way, which is even more incentive to look into it, as late or missed payments will reflect poorly on your credit rating.

To see if you are a homeowner who can take advantage of this modification plan, you need to check with your current mortgage provider, a different mortgage provider, or a lending institution which offers home mortgage modification options. Typically, verifiable proof of income, monthly expenses and bills, your mortgage payment history, and a hand written letter of “Financial Hardship” explaining your financial woes and difficulties. Upon your application being approved, you can then start working on the home loan details and what will be modified and worked to make an affordable monthly payment for you.

Most of the time, a simple reduction of interest rates, by as little as 2%, can be enough savings every month to allow you to afford your home. Another way to reduce the payments is to extend the length of the home loan, and spread out the balance over a loner time frame. This will cost you more in interest fees, but it is a good way to keep your home until your financial situation improves and you can then refinance.

All banks and mortgage lenders are not greedy and predatory. In fact, most of them would rather give you an amazing experience, which you are likely to share with friends who would then approach them for their home mortgage needs. Home mortgage modification can be a great thing if it is done the right way. Make sure you do it the proper way and modify that home loan today.

-M Petrone

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