Stop Foreclosure with a Loan Modification of you current mortgage
 A Loan Modification is change in the terms of a mortgage between a homeowner and lender usually due to the borrower's inability to make payments under the original loan.
 A Loan Modification varies in definition by lender but in general means "a permanent or temporary change in one or more of the terms of a mortgagor's loan, which allows the loan to be reinstated, and can result in a payment the mortgagor can afford". In other words, your interest rate can be lowered, your remaining balance re-amortized and/or the current term of your loan extended, in order to reduce your monthly payment.
 You will need to gather a current financial statement, hardship letter and several other documents in an attempt to qualify for a Loan Modification with your lender.
 You should explore a Loan Modification as soon as your income drops below your monthly obligations. Although, lenders are more willing to discuss this option after a Homeowner is behind on payments, you should not purposely default on your mortgage. Since home values are falling and the unemployment rate is climbing Banks are negotiating with borrowers that can prove a change in their financial situation.
 Check your mortgage documents for information pertaining to loss mitigation. In order to qualify for a Loan Modification, all property taxes must be current, or you must be participating in an approved payment plan with your taxing authority. If you have any additional liens or mortgages with other lenders must be subordinate to the first mortgage.
 The Loan Modification Applicant must demonstrate to the Lender that they NOW have the ability to start payments once again. This demonstration is by a precise budget that reveals the total income and expenses of the applicant, with adequate EXCESS cash after all payments are considered. The amount of EXCESS is determine by each bank and varies from lender to lender as to the definition of "adequate".
 The Home Rescue Foundation are professionals in the Loan Modification process and can Pre-Qualify you for the program with a simple call or fill out the input sheet on the home page and a professional loan counselor will be in touch shortly.
 ADVANTAGES:
A successful Loan Modification will give the applicant the possibility of:
1. An interest rate reduction up to 6%
2. The advantage of having the reinstatement amount (total amount of late payments) deferred to the back end of the mortgage and added to the current principle.
3. A reduction in the actual principle balance of the loan
4. Demonstrate to the Lender that they are "pro-active" to the foreclosure process and trying to resolve the situation.
5. Can start a Loan Modification at any time in the foreclosure process and even if you are not even in foreclosure!
6. Has many of the same features of a refinance, without the high cost.
 DISADVANTAGES:
You only get one shot at the Loan Modification so you need to get it right the first time. You may need to make a payment to start the Loan Modification between zero and two payments, depending upon the Lender.
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