We have a real crisis in the housing market, affecting 30,000000 home owners in the USA. Increasing numbers of homeowners are losing their jobs, or having their salaries reduced. Increasingly home-owners are falling in arrears with their car, mortgage or credit cards repayments. These people are in imminent danger of defaulting on their mortgage and seeing their house suffer foreclosure. But there is a solution, and many homeowners aren’t even aware of this as an option: it’s known as loan modification - sometimes referred to as loan mod.
Loan modification doesn’t entail re-financing, so there is no credit check needed. It isn’t debt consolidation. It is renegotiating the current loan to achieve a reduction in interest rate and, under certain conditions, a lowering in loan principal. And there is no extending the term of the loan. A new, lower, monthly payment is achieved which is sustainable to the home owner. Loan modification is a real win-win for all concerned parties. To the home-owner it can mean the difference between keeping or losing their house. To the banks, it might mean the difference between staying afloat or sinking.
There’s no reason why home owners can’t arrange their own loan modification by contacting their bank’s loss mitigation department. But it isn’t advisable - the banks usually offer only a very small lessening in interest, or no reduction at all. It’s far better to engage the services of an established loan modification firm, which has its own team of dedicated loan modification lawyers, who do nothing other than meet with banks all day long and have the knowledge and experience to attain a telling lowering. Going it alone is similar to representing oneself in a court of law - it is seriously not recommended. A reliable mortgage loan modification firm can negotiate a 30% to 50% reduction in interest rate without increasing the length of the mortgage loan. It’s well worth whatever fee they charge to achieve this.
