We have a real crisis in the housing sector, affecting 30,000 000 homeowners in America. More and more people are losing their jobs, or having their salaries reduced. More and more home owners are falling late with their credit card, mortgage or car payments. These home owners are in real danger of defaulting on their mortgage and seeing their home go into foreclosure. But there is a solution, and many home owners are not even aware of this as an option: it’s called loan modification – sometimes referred to as loan mod.

Loan modification does not entail re-financing, so there’s no credit check required. It is not debt consolidation. What it is, is renegotiating the existing loan to achieve a reduction in interest rate and, under certain circumstances, a reduction in loan principal as well. And there is no increasing the term of the loan. A new, reduced, monthly payment is achieved which is affordable to the homeowner. Loan modification is a real win-win for all parties concerned. To the home-owner it can mean the difference between losing and keeping their home. To the banks, it could mean the difference between remaining solvent or being forced to fold.

There is no reason why homeowners cannot arrange their own loan modification by contacting their bank’s loss mitigation dept. But it seriously is not advisable – the banks will often offer only a small decrease in interest, or no reduction at all. Far better to use the services of an experienced loan modification firm, which employs its own team of dedicated loan modification attorneys, who do nothing but talk with banks all day every day and know how to accomplish a telling lowering. Going it oneself is like representing one self at a court of law – seriously unadvisable. A good mortgage loan modification firm can negotiate a 30 – 50% lowering in the interest rate without increasing the term of the loan. It is well worth whatever fee they charge to accomplish this.