Can I Stop Home Foreclosure With A Modification Of Loan?

By: J. Sopher

Do you find yourself falling behind on your house payments? Is your mortgage lender calling you and threatening to foreclose? If you want to keep your home, the best way to stop home foreclosure is to negotiate a modification of loan, also known as a loan modification agreement, with your mortgage lender.

There are presently a few different programs available that will result in a modification of loan. Have you wondered if you would qualify for a loan modification? Homeowners all across the country have learned that a modification of loan is just the ticket to stop home foreclosure. So, what types of situation increase the chances that you could qualify for a mortgage rate modification?

You were laid off from your place of employment or suffered some other financial emergency.

As much as we try, we simply cannot control all the things that happen in our lives. Perhaps your hours were cut back at work, or worse yet, you've been laid off. Maybe there was an illness or death in your family. It cost money to deal with it, but also required much of your time and resulted in lost time on the job. Car accidents. Injuries. Unexpected events. The depressed economy reduced your income. While you were originally able to afford those payments on your mortgage, there are some solid reasons why you no longer can. Situations similar to these are generally accepted by mortgage lenders as justification for approving a modification of loan.

Your home value has dropped greatly.

The real estate market has been in steep decline and home values are falling all over the country. Unfortunately, if you are "upside down" on your home loan (you owe more than the home is worth) you may not be able to get a modification of loan. People in this trap are generally better off doing a short sale. Whichever applies to you, it would be a wise investment of your time to discuss your situation with a loan modification specialist. Even if you're not in a position to qualify for a modification of loan, they can help you to persuade your lender to approve of a short sale.

You have been unable to refinance your home loan.

So many homeowners with an adjustable rate mortgage have attempted to refinance. Sadly, only a small percentage of these people have gotten loan approval. With so many bank failures, funds for home loans have dried up to a large extent, making it extra tough to get new financing. The good news, however, is that many of those same homeowners have been able to reach a workout agreement with their lenders, and get their existing loans modified in a way that they can now afford the payments.

Those high mortgage payments are just too much for you.

In the current tough market, many homeowners, through no fault of their own, have seen their income drop substantially and can no longer afford the home they once easily made payments on. If you qualify, a modification of loan can make your home affordable once again. The alternatives could be either a short sale or a short refinance.

Could you use some help to stop home foreclosure? If you want to keep your home, the loan modification programs now available offer a good way to stop home foreclosure. Call a loss mitigation specialist to negotiate with the lender and protect your interests. Explore your options, then don't waste any time getting help. A modification of loan can really help turn your financial situation around. You CAN stop home foreclosure if you take appropriate action, quickly.

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James Sopher is a retired real estate professional and free-lance writer. Learn how to Prevent Foreclosure Now- know your options!

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