Foreclosure Resource Network

Loan Modification

If you can’t afford your current mortgage, it may be possible to change certain terms of the loan to make it more affordable. For example, changing the interest rate or the time allowed for repayment may lower your monthly payments to an amount that works for you. Any change to the original terms is a loan modification.

There are multiple loan modification programs available, including the federal government’s Home Affordable Modification Program. These programs offer different options for borrowers in different situations, but all are meant to help people keep their homes when facing a significant hardship. We’ll work with you to determine whether a loan modification or another solution may work for you.

Repayment Plan

Anyone who has lost a job or run into unplanned expenses knows that even a short-term hardship can make it hard to keep up with payments. To keep a temporary problem from having long-term effects, it’s important to catch up as soon as possible after you regain your financial footing.

Here’s how a repayment plan can make that easier:

You may spread your overdue amount over a certain number of months.
During that period, you lender add s a portion of the overdue amount to each of your regular mortgage payments.
At the end of the period your mortgage account will be up to date and you will return to paying your normal amount.

This is a possible alternative for the very early stages of missed payments in the foreclosure process.

Recent Loan Modification statistics

Many continue to remain eligible and qualify for a "Trial modification", but few are acheiving a "permanant modification". Many modifications do not qualify for a principle reduction but that is something that is being worked on. See the recent statistics posted by the department of treasury and judge for yourself.