Loan Modification have recieved a good deal of attention lately in the news and general public and rightfully so. A mortgage loan modification is the ultimate tool in foreclosure prevention, and with the advent of such programs as Obama's Making Home Affordable Program, and FDIC's Mod-in-a-Box Program, an increasing number of homeowners are able to lower their monthly mortgage payments and stop foreclosure.

So what is all the hype about? Well, many homeowners across America are in need of foreclosure assitance, that is they need to modify their loan to prevent a bank foreclosure. Very few homeowners want to lose their home to foreclosure, in fact the majority say, "I want to keep my house, or I want to save my home." Many homeowners also are still in ARMs, or Adjustable Rate Mortgages, and simply cannot afford their new, higher payments.

There are a number of key benefits to achieving a loan modification:

1. Lower monthly payment - In one recent case, we we're able to save the homeowner $1347 / month, which translates to over $16,000 / year in savings on her mortgage.
2. Lower interest rate - The same client went from a 8.375% adjustable rate mortgage to a 4.75% 30 year fixed mortgage, and will be paying hundreds of thousands of dollars less in interest over the life of the loan.
3. Being able to keep your house - Clients who succesfully achieve loan modifications get to stay in their homes, and do not have to look for a place to rent and deal with the anxiety and stress of moving and losing their home to foreclosure.
4. Lower principal balance - In some cases, our clients have been able to lower the amount that they owe --- A portion of the debt they owed the bank was simply forgiven! There have been multiple clients that have achieved balance reductions of over $100,000, even over $150,000!
5. Less negative impact on credit scores - A loan modification is simply looked at as the same lien on your credit report, and carries none of the same negative ramifications that a bankrupcty would have. If you are behind on your mortgage payments, it may take a year or year and a half of current payments to get back up to a decent credit score; bankruptcy recovery usually takes 4-5 years.

So who qualifies? Almost everyone. In some cases, you do not even have to be late on your mortgage to get a loan modification. The key to achieving a loan modification in a nutshell is to show just enough hardship that you can no longer afford your current payments, but to show financially that you can afford the new, modified mortgage payment.

There are many tools that a reputable loss mitigation firm can provide to help you achieve a loan modification, such as:

1. Forensic Audit - A forensic loan audit is a legal review of all of your original loan documents by an attorney for violations of RESPA, TILA, and other federal and state laws and statutes. A significant violation can give you the power to recind on your loan, forcing the bank to pay back all monies that you have paid towards the mortgage to date. It can also be used as significant leverage to force your bank or lender to lower your monthly mortgage payments through a mortgage modification.
2. Financial Prospectus / Analysis - A detailed look at your income, assets, and expenses to help you qualify for a loan modification. A good loss mitigation firm can help you with ensuring that you will qualify for a mortgage modification, or advise you in how to budget your finances in such a way as to help you be a more appealing candidate to your lender for a loan modification.
3. Legal Representation & Negotiation - A strong negotiator can mean the difference not just in hundreds of dollars per month on your mortgage payment after the loan modification is completed, but also whether or not the bank will modify your loan. Your lender has attorneys, and it is advised that you retain one as well; if you were to go through a divorce, or bankruptcy, you would certainly engage legal counsel. This is your home, and a reputable real estate attorney is almost always a must in the battle to save it.
4. Other Loss Mitigation Services - A good loss mitigation firm can also help you to recover if foreclosure seems inevitable and you absolutely do not qualify for a loan modification through short-sale representation, or arranging a deed-in-lieu of foreclosure to help you walk away from the home without a huge debt hanging over your head, which may result in a judgement, garnishment of wages, and ultimately the financial failure of your household.

Again, with representation provided by a good loss mitigation firm, almost anyone can qualify for a loan modification. If you are a homeowner, even if you are not in immediate financial crisis, a loan modification can help you save thousands of dollars, and does not cost nearly as much as a refinance. Visit Loan Modification Zoom on the web for help, they are a great firm that will represent you well, offer unlimited negotiations with your lender, a free initial consultation, very low retainer fees, and guaranteed results. Many homeowners they have even helped for free!