We have a real crisis in the housing market, which affects thirty million home owners in America. More and more homeowners are losing their jobs, or having their salaries reduced. More and more home owners are, through no fault of their own, falling late with their mortgage, credit card or car payments. These homeowners are in danger of defaulting on their mortgage loan and having their home suffer foreclosure. But there is a solution, and many people are not even aware of this solution: it’s called loan modification - sometimes referred to as loan mod.

Loan modification does not involve re-financing, so there’s no credit check needed. It isn’t debt consolidation. It is renegotiating the existing loan to affect a lessening in interest rate and, under certain conditions, a reduction in loan principal. And it doesn’t involve extending the term of the loan. A new, lower, payment is achieved which is sustainable to the home owner. Loan modification is a true win-win for all parties concerned. For the home owner it often means the difference between keeping or losing their property. To the banks, it could mean no less than the difference between staying afloat or sinking.

There’s no reason why homeowners can’t arrange their own mortgage loan modification by contacting the loss mitigation department at their bank. But it isn’t recommended - the banks will usually offer only a small lowering in interest, or no reduction at all. It’s much better to engage the services of a reputable loan modification firm, which uses its own team of dedicated loan modification attorneys, who do nothing but talk with banks all day every day and have the knowledge and experience to accomplish a significant lowering. Doing it alone is like representing yourself in a court of law - it’s seriously not recommended. An experienced mortgage loan modification firm can attain a 30% to 50% reduction in the interest rate without an increase in the term of the mortgage loan. It’s well worth whatever fee they charge to achieve this.