A Modification Of Mortgage Can Stop Loan Foreclosure

By James Sopher

Have you fallen behind on your mortgage payments? Is your lender calling you and threatening to foreclose? If you want to keep your home, the best way to stop loan foreclosure is to negotiate a modification of mortgage agreement with your lender.

There are several different loan modification programs that are available to struggling homeowners. Some involve a mortgage rate modification. Others restructure the repayment period of the loan to extend the payoff term in order to lower the monthly payments. You may have wondered if you would qualify for a modification of mortgage. Well, thousands, if not millions, of homeowners have discovered that a modification of mortgage is the best possible means to stop loan foreclosure when their mortgage is in default. So, what conditions create a favorable scenario for you to pursue a loan modification agreement?

You tried to refinance but you couldn't.

Huge numbers of homeowners with adjustable rate mortgages have attempted to refinance. Unfortunately, most of these applicants were turned down. Ever since the housing market went over a cliff and lenders started collapsing, it seems to be almost impossible to get approved for a new home loan. The good news, however, is that many of those same homeowners were able to reach a workout agreement with their lenders, and get their existing loans modified in a way that they can now afford the payments.

You were laid off from your job or suffered some other financial hardship.

Hey, life happens, right? Some things are just beyond your control. Perhaps you got laid off from work. Or maybe you had an illness in your family that required financial support, or too much of your time that kept you from working. Auto accidents. Injuries. Unexpected events. The market affected your income. These are all legitimate reasons for getting behind on a mortgage that you were otherwise able to afford. Hardships like these are very often accepted by lenders to justify entering into a modification of mortgage agreement.

The value of your home has dropped substantially.

The real estate market has been in a steep decline and home values are falling all over the country. It is an unfortunate fact that in many cases, loan modification may not be an option once you get upside down on your home loan. People in this situation are sometimes better off doing a short sale. In any event, it is certainly worth your time to explore your options with a loss mitigation specialist. At the very least, they can help you to get approval from your lender for a short sale.

You simply can't keep up with the mortgage payments.

In this tough market, many homeowners, through no fault of their own, have seen their income drop substantially and can no longer afford the home they once were able to make payments on. You may be able to get a mortgage rate modification that makes your home more affordable. If not, a short sale could be an option.


Do you need help to stop loan foreclosure and save your home? If you want to stay in your home, a modification of mortgage agreement offers a much better alternative. Contact a reputable loan modification service that can negotiate on your behalf and save you $1,000's over the life of your loan. Most of them even offer a free consultation to help you determine what will work best in your situation. Explore your options, then don't waste any time getting help.