May Someone Explain How Loan Modification Programs Work?

A loan modification is an opportunity to rework your loan. If you are behind on payments these modifications can help you save your home. When asking for a loan modification, it is much like applying for the loan in the beginning. Most banks want to ensure you have a steady income and are going to be able to make the payments. Loan modifications can be done if you are in foreclosure, current, or in bankruptcy. It is up to the lender to decide if they will work with you. Most banks try and do a loan modification, instead of a foreclosure. Not all banks will rework your loan, most require that you are at least 3 payments behind, and in the foreclosure process. Do not spend your mortgage payment, save it for extra incentive to offer the bank when you are asking for your loan modification.