Loan Modification | Mortgage Loan Modification

With the current mortgage crisis and increase in home foreclosures, the government has developed a program called Making Home Affordable, which aims to help homeowners avoid foreclosure and remain in their homes. Part of their plan involves modifying the home loans of financially struggling homeowners, so that their monthly mortgage payment is lower and more affordable.

Through loan modification, eligible borrowers can lower their monthly payments by receiving a lower home mortgage rate and/or extended loan term on their existing mortgage. The government hopes that loan modification will alleviate the financial burden many people face due to high monthly mortgage payments, foreclosure notices, and/or underwater mortgages.

Mortgage Refinancing Frequently Asked Questions:

Am I Eligible for a Loan Modification?

What Documents Must I Show?

Why Can’t I Just Refinance?

You Should Consider Mortgage Loan Modification If ...
Most lenders recommend loan modification to homeowners who cannot qualify for (or afford) refinancing, or for homeowners who need a quicker fix to their mortgage woes.

A Future Goal
The immediate goal of loan modification is to lower monthly mortgage payments and help families remain in their homes. But by helping homeowners avoid foreclosure, loan modification may achieve an even larger goal: to increase property values in all parts of the nation and help alleviate the mortgage crisis. Since widespread foreclosures lessen property values in neighborhoods across America, lessening the prevalence of foreclosures would boost property values and help not only homeowners, but also the economy.

Be Aware of Loan Modification Scams
As the number of foreclosed homes continues to rise, so do the number of mortgage scams. Before revealing any personal or financial information to a mortgage lender, be sure to check their reputation, financial status, and customer service ratings online with the Better Business Bureau. Most loan modification scams ask homeowners to pay money up-front for "consultation" or "foreclosure rescue." Never pay up-front fees for loan modification or any type of foreclosure rescue. Chances are, after you pay, you’ll never hear from them again.