If you are stuck in an unaffordable home loan and are not able to refinance, there are some new loan modification programs you should know about.  As the housing market continues to decline and foreclosures reach record levels, the Federal government is strongly encouraging lenders to reach out to their troubled borrowers with affordable loan modification programs.

Several lenders are proactively offering systematic loan modification offers to homeowners facing default due to adjustable rate loans or sub prime loans.  Numerous lawsuits have resulted in billions of dollars of home loan aid for borrowers who were victims of predatory lending practices.  Many homeowners will be receiving notices by mail with proposed loan modification offers.  For those homeowners who have not yet been contacted by their lender, now is the time to call the loss mitigation department to get your loan modification program information.

There are as many loan modification options as there are homeowners, as each situation is unique.  However, there have been some standard loan modification programs initiated that feature some of the following options:

• Reduced interest rates as low as 2%
• Interest only payments for a pre-determined time
• Principal reduction to 95% of the homes current market value
• Fixing initial “teaser rate” for life of the loan
• Waive all late fees
• Eliminate pre payment penalties

The Federal government is serious about pressuring lenders to offer an affordable and sustainable loan modification prior to foreclosure proceedings.  Hope for Homeowners is a government sponsored program that offers to refinance distressed borrowers into fixed rate government insured loans.  This is a first choice option for many lenders, however the program is voluntary and not all borrowers will qualify.

Loan modification is the most cost effective and timely manner to help the millions of defaulting homeowners get back on track.  Lenders have been slow in offering any meaningful assistance to borrowers, however the recent bank failures and bail out have created a sense of urgency to initiate methodical and streamlined loan modification programs to homeowners facing default.

Homeowners facing mortgage default should start learning as much as they can about the loan modification programs being offered.  There is alot of information online about loan modification and loan modification companies, but homeowners need to do their own research and obtain accurate, unbiased information before contacting their lenders about a loan modification program. 

Knowledge is Power

Whether you decide to work directly with your lender to find a loan workout solution, or hire a loan modification company, please take the time to educate yourself so you will have all the information you need and know what questions to ask.  You might have been taken advantage of when you got your loan, but you do not have to let that happen again.  An informed homeowners is hard to take advantage of again.

One of the most comprehensive and up to date sources of unbiased loan modification information is The Complete Loan Modification Guide.  This is a low cost, easy to read handbook that you can order and download right online.  The Complete Loan Modification Guide will provide you with everything you need to prepare a professional and acceptable loan modification application.  You receive all of the required loan modification forms along with detailed directions on how to complete them.  You will learn about debt ratio, hardship letters, financial statements, your legal rights and much more.  Don’t take a chance with your family’s future, order and download The Complete Loan Modification Guide today and get started on the path to home based financial security.

To learn more about loan modification programs, please visit us at:  http://www.myloanmodificationcenter.com