Loan modification is a process that allows homeowners and lenders to change the
terms of a loan in order to help the borrower stop foreclosure. A loan modification
is not a new loan. It is the renegotiation - or loan restructuring - of an existing
mortgage note. For homeowners behind on their mortgage, or those with a low credit
score, a loan modification is often the only option available because they are unable
to get approved for a mortgage refinance or a short-refinance.

A loan modification can be done in several ways or combination of ways listed
below:

• the loan’s interest rate may be decreased
• the interest rate could be changed from an adjustable to a fixed rate
• the period of time the borrower has to pay the loan back can be lengthened
• the type of loan could be changed altogether

Many borrowers are facing foreclosure because their interest only or variable rate
loan interest terms have sky rocketed beyond what they could have imagined. A loan
restructuring is an agreeable way for both the lender and the borrower to avoid
the cost and hassle of the foreclosure process.

The U.S. government, now more then ever wants to help home owners remain in their homes. The government realizes that in order to correct the current crisis that our country is they have to
attack the core of the issue. That is the housing crisis.

Due to unscrupulous lending over the last few years, many homebuyers got into
loans that they did not understand nor could afford. It is this type of lending
that has gotten us into one of the worst housing crisis that our country has
ever experienced. Homes are being foreclosed at record numbers and neighborhoods
are falling apart. The government now realizes that if they are to correct the
current situation that our country is in, they have to start by keeping home
owners in their homes.

Through the recent stimulus package, as well as through other programs, the
government has given incentives and has urged lenders to make sure that they
make every effort to keep home owners in their homes. The government wants to
assist you. Take advantage of this tremendous opportunity and modify your loan.

Don’t become a statistic in this foreclosure crisis, change your fortune and
stay in your home.