1. Loan modification is an agreement created in lieu of foreclosure between a lender and a borrower who experiences inability to make their existing mortgage payments.

2. A modification can be in the form of interest rate reductions, loan term extensions, developing a new loan or a combination of the three.

3. Loan modifiers act as a liason between the the lender and the borrower to form an agreement that is beneficial to both parties.

4. Loan modification can effectively stops the foreclosure process and protects credit history.

5. In many cases it costs the banks less to work with borrowers and modify their loan than it does to foreclose and sell the property at deflated rates. This makes many banks receptive to negotiations and willing to participate in modification.

6. There is a possibility of reversing the process until a foreclosure sale of the property occurs. However it is important to note that the sooner you contact someone for help the easier it makes the process.

7. Modifying a loan is not the same as refinancing one. Refinancing a loan is essentially starting the loan process over again, which can result in new closing & legal fees, appraisals and taxes. Whereas loan modification takes your existing loan and modifies it to achieve a fixed rate and to better suit the borrowers financial circumstances.

8. Depending upon your stage of foreclosure, your financial position and the lender itself, it can take anywhere from a week to 6 weeks to complete the modification process.

9. To be a qualified applicant you must own and occupy the property and the loan must be dated before Jan 1 2009 & have less than the following amounts in principal still to be paid:

10. Documents you may require to complete the loan modification process include:

11. The mortgage industry is suspect to most Americans right now, and there will always be individuals and companies looking to exploit the resulting problems for homeowners & borrowers. Beware of companies who look to make a profit from your situation, hiring a seasoned lawyer to handle the process is prudent and ensures the process is completed within the law.

These are just a few quick facts to get people started. We have entered uncertain financial times and more and more people are facing foreclosure on their homes. There are options that won't destroy your credit.