About

Economic crisis. Current economic conditions. In today’s economy. These are the terms and phrases that our society has become all too familiar with over the past few years. Nearly anyone you talk to has felt the impact of poor personal financial decisions, or decisions made by the government or other financial institutions that have affected him or her personally.

As a result, probably the most commonly shared burden by the average American is the financial impact of the housing market crash, which in turn created a mortgage loan crisis and increase in mortgage modification (and, sadly, an uprising of scams). This insurgence of scams has also spurred a closer look at home loan modification laws, so don’t fret because there could be a legitimate home loan modification program out there to help you after you draft a home loan modification letter (a.k.a. hardship letter).

Home Loan Modification should not be confused with refinancing. Refinancing replaces an existing mortgage with a new loan. Home Loan Modification modifies one or more of the terms of an existing loan.

Refinancing is a great option for homeowners looking to take advantage of low interest rates and reduce their mortgage payments. Realistically, few homeowners have enough equity in their homes to qualify for a new loan; that’s where Home Loan Modification can help.

The objective of Home Loan Modification is to restore the existing mortgage with a payment and terms the homeowner can manage. Each loan and homeowner situation is unique and requires proper assessment of all factors to determine which type of modification a home loan would qualify.

Mortgage Modification – Is It The Only Option?

If the barrage of news reports about mortgage modification, stimulus packages, government bail-out plans and the like has left you wondering if you are able to take advantage of one of these mortgage modification opportunities, the answer is yes. Maybe.

Seeking mortgage modification is not for the fainthearted. It requires researching the various programs available, having a good understanding of your current financial situation, and the willingness to plunge forward until you get the answers you are looking for. Finding help can be a daunting task but well worth your time and energy if you are able to stay in your home and afford to remain current on your mortgage.

There are many options available to homeowners who are overwhelmed with mortgage debt. Mortgage modifications are one of the most sought after solutions to our housing market crisis and oddly enough, they are also the most denied by lenders.

In a nutshell, mortgage modification is a permanent change in one or more of the terms of your current loan. Mortgage terms refer to things like your annual percentage rate, the length of the loan, if you have a fixed or adjustable rate, etc. With a change in one or more of these terms, your monthly mortgage payment could be reduced to a more manageable payment so you can remain in your home.