Tried to refinance but were turned down because you do not have enough equity?  Well, you are not alone.  An estimated 12 million American mortgage holders now owe the bank more than their homes are worth. And with housing prices sliding still and the credit crunch worsening, the number of so-called upside-down mortgages is expected to rise to record levels.  A loan modification is quickly becoming the only viable option for homeowners trying to find a way to save their home from foreclosure.

Within a year, Moody’s Analytics predicts, a whopping 30% of all U.S. mortgage holders will owe more on their homes than they are worth. In some California communities, according to real estate service firm Zillow.com, negative equity already is the norm.

The effects of this are many.

The risk of default rises-and it’s good to recall that it was people defaulting on their home loans last year that set much of the current economic crisis in motion. Home equity lines of credit-even for people who pay their mortgages faithfully-will be harder to come by. And woe to those who lose a job or get sick.

“If you have some kind of disruption to your income and you can’t make your mortgage payment, it’s going to be very hard for you to refinance or anything like that,” said Mark Zandi, chief economist for Moody’s. “This was the bedrock of most people’s savings, their home.”

The upside-down effect will change the financial equation for millions of people who face an immediate crisis.  Short sales have become very common, but even a home listed well below value can languish on the market for months due to a lack of buyers and increased inventory.  Meanwhile, the clock is ticking for delinquent homeowners trying to salvage their credit and security.

The bright side for some homeowners who owe more than the house is worth is the home becomes less attractive for the lender to foreclose on.  The foreclosure process costs the bank about $50,000, and when added to the amount the lender will lose when the home is sold, the bank is less likely to pursue that option first.  A loan modification is the most cost effective and beneficial option for all parties in cases like this.  A loan modification will offer the homeowner the affordable payment they need to maintain ownership, and the lender turns a delinquent loan into a performing asset-it’s a win-win for everyone.

Home Edition Loan Modification Kit

To find out if a loan modification is an option for you, learn everything you need to know in The Complete Loan Modification Guide.  This is a low cost, easy to ready home edition handbook that you purchase and download right online.  The Complete Loan Modification Guide will provide you with step by step instructions on how to prepare a professional loan modification application for your lender.  The Complete Loan Modification Guide is the most complete and up to date source of information available today, all in one easy to follow handbook.  Order and download The Complete Loan Modification Guide today and get started on the path to home based financial security.

If you would like more information about loan modification, please visit us at:  http://www.myloanmodificationcenter.com