The Loan Modification Programs are all the rage right now as the homeowner has a channel to facing foreclosure. A loan modification is different than a foreclosure. A foreclosure means the borrower has been delinquent for more than six months or longer and cannot refinance their home because the home exceeds the value of the loan.

A loan modification program can lower payments without refinancing, it can waiver late fees and lower your interest rate. A home loan modification is like a refinance with the objective of finding a suitable payment agreement the homeowner can agree to with considerations to their financial situation, in fact it is often called a modified refinance with the only difference is that instead of looking for a new loan, you modify the terms of the loan.

Not everyone can qualify for a loan modification program; the borrower has to prove that the family is struggling to qualify through pay stubs, receipts and spending habits. They have to miss no more than 3 payments or a 90-day time period, they have to own and occupy the property as a primary residence and have not filed for bankruptcy.

Each mortgage lender or service will have different modification programs and processes, so the process varies by the lenders. You must prove economic hardship by having receipts, tax statements, utilities and other bills on a monthly basis. This will prove that you cannot afford the mortgage to qualify for government help.

The purpose of a loan modification is to prevent foreclosure and to get the payments affordable to the borrower; no one wants to lose their home so taking the steps to acknowledge and prove your circumstances will give you a better chance of getting into a loan modification program that will work for you. Take your step to avoid foreclosure.