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Loan modification is a process whereby a homeowner's mortgage is modified and both lender and homeowner are bound by the new terms. Loan modification Agreements come in different forms. The most common modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, increasing the loan term, forgiveness of payment defaults & fees, or any combination of these.

A Home Loan Modification is an offer to make a permanent change in the borrower’s mortgage terms which is normally involves a rate modification. To find out if you qualify or how to get help on a mortgage loan modification there are plenty of attorneys and loan modification companies to help consumers. A loan modification is a long term solution, modified forbearance agreements are designed by the lenders to just get paid. Of course they will negotiate with you to get caught up, requiring a portion of the late payments to be paid up front to reinstate the loan or to stop foreclosure.

A standard loan modification puts the borrower into a comfortable and long term ability to make their new payment. Modifying the mortgage terms of the current loan can involve a very low rate that is fixed for a period of 3 to 7 years then systematically rise to the current market fixed rates. In certain situations, the lender may also choose to decrease the principal loan balance or wipe out part or all of the second lien if it is introduce properly with documentation.

What is the Loan Modification Process?
A detailed financial analysis is performed to understand your unique situation. Then, we work with your lender’s Loan Modification procedures as well as your laws in order to help you understand your options. This process can take days to a few weeks so it is crucial that we get the process started if you anticipate a problem. Our software program utilizes the same documents the banks use and is used by the Making Homes Affordable Program.

Loan Modifications have been an acceptable outlet since the 1980s. At that time, the FDIC (Federal Deposit Insurance Corporation) applied workout procedures for troubled loans out of bank failures, modifying loans to make them affordable and to turn nonperforming into performing loans.

For more information visit:Loan Modification

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