A Successful Loan Modification

Loan modification is when you and your existing lender agree to permanently change the terms of your original note. A loan modification is more than just foreclosure prevention. A successful modification is affordable and permanent.

Why would the banks want to renegotiate?

The banks would rather change the terms of the loan to a payment that you can afford than take the property through foreclosure. This will allow them to keep the loan on their books at full value rather than being forced to mark it down according to current mark-to-market accounting rules.

Do I qualify for a loan modification?… Read the rest