During the mortgage boom there were many bad loans (loan fraud) which were approved by senior management and funded. Mortgage brokers and lenders were in a hurry to make money for themselves by selling high priced loans to people with bad credit. These loans known as adjustable rate mortgages due exactly that. Subprime loans interest rates adjust and which way do you think the payments go? Exactly, they go upwards and upwards until the homeowner cannot afford the payment anymore then becomes behind on the mortgage.

If you or someone you know is in this situation, a loan modification and documentation review could really help. The law is on yourside but your lender might not be. A loan modification attorney can help review your loan documents for errors and most likely find something that can turn in your favor. A loan modification attorney will have your best interest and can renogotiate a new rate and lower payment without having to refinance your loan. For homeowners dealing with this headache and going through mortgage hardship, I recommend you get a copy of this free loan modification help and strategy ebook to know your options and decide if this is right for you.

A variety of bills were introduced in the House and Senate in 2007 and 2008 to deal with the ongoing housing/mortgage crisis. The main bill that emerged was H.3221, the Foreclosure Prevention Act of 2008. The main provision of the bill would create a program offering lenders a federal guarantee on renegotiated mortgages with borrowers whose houses are worth substantially less than their mortgage is worth (the homeowners most likely to abandon their mortgages). The bill would also offer a tax credit for new homebuyers purchasing unoccupied houses, provide funding for loan counseling, raise the upper limit on loans Frannie Mae and Freddie Mac can purchase from urban areas, provide $11 billion in funding to local government to purchase, refurbish and resell abandoned properties and authorize state governments to issue an additional $4 billion in bonds to purchase low-income housing units.

The bill, renamed the American Housing Rescue and Foreclosure Prevention Act of 2008, was passed by Congress on July 26, 2008.

• Are you unable to qualify for a much needed refinance?
• Has your adjustable interest rate increased drastically?
• Are you behind on your monthly mortgage payments?
• Are you in a negative-amortization loan?
• Do you owe more than your home is now worth?
• Did you qualify for a "Stated Income" loan for your current mortgage?
• Do you have a large balloon payment coming due soon?
• Did you take an overly expensive or predatory loan?
• Have you received a Notice of Default from your lender?

Are you in foreclosure now and are you about to lose your home?

Has your dream of home ownership turned into a nightmare of sky high interest rates, unaffordable payments, constant worry and the very real possibility of losing your home?

This DOES NOT need to happen to you and your family!

For a very limited time, you have the opportunity to take advantage of the political pressure being applied to banks and mortgage lenders to accept loan modifications and help keep home owners in their homes.

If any of these scenarios apply to you, you may be an ideal candidate for a loan modification. One or more of these many financially beneficial results are awaiting you and your family:

• Missed payments are forgiven or moved to back end of the loan.
• Monthly payment is reduced to fit your ability to pay.
• High interest rate is reduced to create an affordable payment.
• Adjustable rate is converted to lower fixed-rate loan.
• Lender may forgive part of loan balance to match your home's value.
• Foreclosure process is stopped and lender modifies loan terms!
• Negative amortization loans are converted to non-negative, low, fixed rate loan.

If any of these scenarios apply to you, you may be an ideal candidate for a loan modification.

So what is loan modification? It's the new craze in the mortgage business. Basically, they are undoing everything they did. The mortgage crisis has everyone running around trying to renegotiate new terms with their lender.

Although I've heard of people calling the lender themselves, a loan modification attorney has more experience, power, and better negotiation skills.