We have a terrible problem in the housing market, affecting 30 million home-owners in the USA. Increasingly 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 people are in real danger of defaulting on their mortgage and having their house go into foreclosure. But there is an answer, and many home-owners are not even aware of this as an option: it’s known as loan modification - sometimes referred to as loan mod.

Mortgage loan modification doesn’t entail re-financing, so there is no credit check. It doesn’t involve debt consolidation. It’s renegotiating the current loan to affect a lessening in interest rate and, under special circumstances, a reduction in loan principal. Without increasing the term of the loan. A new, reduced, payment amount is arrived at which is affordable to the home owner. Loan modification is a true win-win situation for all parties concerned. For the homeowner it can mean the difference between keeping or losing their property. To the banks, it could signify the difference between staying afloat or going under.

There is no reason why homeowners cannot arrange their own loan modification by contacting the loss mitigation department at their bank. But it seriously isn’t advisable - the banks will usually only offer a small reduction in interst rate, or no reduction at all. It’s much better to engage the services of an experienced loan modification firm, which uses its own team of dedicated loan modification attorneys, who do nothing but meet with banks all day every day and know how to attain a substantial lowering. Going it alone is similar to representing yourself in a court of law - seriously not recommended. A reliable mortgage loan modification firm can negotiate 30% to 50% reductions in interest without increasing the term of the mortgage loan. It is well worth whatever fee they charge to accomplish this.