We have a terrible crisis in the housing market, which affects thirty million people in the United States. More and more home-owners are losing their jobs, or having their salaries reduced. More and more home owners are falling late with their mortgage, credit cards or car repayments. These home owners are in danger of defaulting on their mortgage loan and having their home suffer foreclosure. But there is a solution, and many homeowners are not even aware of this solution: it’s known as loan modification - sometimes known as loan mod.

Loan modification doesn’t entail refinancing, so there is no credit check required. It isn’t debt consolidation. What it is, is renegotiating the current loan to affect a lowering in interest rate and, under certain circumstances, a lowering in loan principal. Without extending the term of the loan. A new, lower, payment amount is arrived at which is affordable to the home-owner. Loan modification is a real win-win solution for all concerned parties. To the homeowner it can mean the difference between losing and keeping their property. For the banks, it might signify no less than the difference between staying afloat or going under.

There’s no reason why people cannot arrange their own loan modification by contacting their bank’s loss mitigation dept. But it is not advisable - the banks usually offer only an insignificant lowering in interst rate, or no reduction at all. Much better to use the services of an established loan modification firm, which uses its own team of loan modification lawyers, who do nothing but meet with banks all day long and know how to attain a significant reduction. Doing it alone is akin to representing one self at a court of law - it is seriously unadvisable. An experienced mortgage loan modification firm can achieve a 30 - 50% reduction in the interest rate without an extension to the length of the mortgage loan. It’s well worth the fee they may charge to accomplish this.

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