Loan Modification Simplified

Having the prospect of a foreclosure hanging over your head is more than just stressful. The thought of losing your family home can be absolutely gut-wrenching

Loan modification has been all over the television and may be the answer to your prayers. If you are thinking about paying someone several thousand to prepare the loan modification for you, then you may want to hold on to your cash a little longer and do further investigation because it is not that difficult to do it yourself with the proper guidelines

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Here's some basics about loan modification:

• A loan modification will stop foreclosure because your loan will be brought current by the modification.
• A loan modification is a permanent change in one or more terms of your mortgage with payments you can afford.
• According to HUD, all past late charges should be waived by the lender at the time of the loan modification.
• The Federal government has allocated $75 billion dollars to subsidize lenders and servicers who offer a loan workout, that means your bank or mortgage company can make money by helping you and themselves at the same time. In other words, they want to do loan modifications! 
• If you pay your new modified payments on time you will be eligible for up to $5000 credit against your loan balance! 
• The main qualification the lender is looking for is your current and future ability to pay the modified payment.
• Past due payments can be added to the new loan balance and will be brought current.
• You don't have to pay someone to represent you in the loan modification!