There is a real problem in the housing market, affecting thirty million homeowners in America. More and more people are losing their jobs, or having their salaries reduced. Increasingly people are falling late with their mortgage, credit card or car repayments. These people are in real danger of defaulting on their mortgage and having their house go into foreclosure. But there is a solution, and many people aren’t even aware of this as an option: loan modification – sometimes known as loan mod.

Mortgage loan modification does not entail refinancing, so there is no credit check. It isn’t debt consolidation. It’s renegotiating the existing loan to affect a lessening in interest rate and, under special circumstances, a reduction in loan principal as well. Without extending the term of the loan. A new, reduced, payment is achieved which is sustainable to the homeowner. Loan modification is a real win-win situation for all concerned parties. For the home-owner it often means the difference between losing and keeping their property. To the banks, it can signify the difference between remaining afloat or going under.

There is no reason why people can’t arrange their own loan modification by contacting their bank’s loss mitigation department. But it seriously is not advisable – the banks usually only offer a very slight reduction in interst rate, or no reduction at all. Much better to engage the services of an established loan modification firm, which has its own team of dedicated loan modification lawyers, who do nothing but speak with banks all day long and know how to achieve a substantial reduction. Doing it alone is akin to representing yourself in a court of law – it’s seriously not recommended. A reliable mortgage loan modification firm can achieve a 30% to 50% reduction in the monthly repayment without increasing the term of the mortgage loan. It’s well worth the fee they charge to achieve this.