If you are faced with the prospect of a foreclosure there are only two options in front of you to prevent the situation: refinancing or modifying your mortgage.
Of the two, mortgage modification is a simpler and cheaper way of avoiding foreclosure.
But people often wonder about the efficacy of mortgage modification in stopping foreclosure.
So if you are wondering if home loan modification can help you to retain your home; here is the answer for you.
Homeowners who are trying to get out of a possible foreclosure situation need to know that they can get their loan modified before the foreclosure is finalized.
But you will need to qualify for the home loan modification and you will also have to prove that you are indeed capable of paying the new terms after securing the mortgage modification.
Among other things the lending institution will analyze your income and expenditure before grating a home loan modification.
There are two ways of initiating the process to secure a mortgage modification either you can apply for it on your own or you could avail the services of one of the several institutions that offer to apply for the home loan modification on your behalf.
But you need to make sure that you hire a reputable firm because many firms are simply trying to make a quick buck at your expense.
With a home loan modification you can either extend the term of your loan, or lower the interest rate.
So in other words by securing a mortgage modification you are trying to lower your monthly mortgage payments.
You need to go for a realistic amount because even though banks would like to avoid more foreclosures they don't want to put themselves in a situation where they will have to give you another mortgage modification in a few months.
However, you also need to know that just because you have secured a home loan modification does not mean that the foreclosure process will simply stop.
So make sure that you contact your lending institution after you have secured a loan modification.