A mortgage modification is one of the loss mitigation programs offered by a lender to stop foreclosure for the homeowner and lender. The mortgage modification is an agreement between the homeowner and lender that is an agreement which can change the present interest rate or mortgage payoff date. Mortgage companies are reluctant to negotiate when homeowners are facing foreclosure and do not have enough money to re-establish their mortgage. A homeowner must prove to the lender that they had a hardship which has been fixed and have the funds for a modified home loan payment. After the review and a skilled case is offered a lender may be reluctant to reduce the current interest rate which will reduce the house payment. A term extension is also an selection that will reduce monthly mortgage payments.

The reason behind the mortgage modification is to create a win/win condition between the homeowner and lender to eliminate the foreclosure process. The agreement that is produced is put in writing and must be signed. The most recent terms of the mortgage modification are listed on the mortgage modification agreement.

There are steps that need to be drawn up methodically to be sure the information is submitted correctly. Prior to making contact with the servicer about a loan remodification you need to understand your financial situation, your income vs. your bills. If you need foreclosure help and need a mortgage modification we have helped many homeowners keep their homes. Contact us today before it is too late otherwise we can not help you.

Be careful when asking a bank for a mortgage modification because their loss mitigation department have no vested interest in you and will in many situations set you up on a plan you can not afford. We are excited you found us and really look forward to helping you with a mortgage modification.