Basically, modifications depend on many factors, including the home’s value and your ability to make payments on the loan and property taxes going foward.

If you have a steady income, are paying an interest rate higher than current national averages, and/or have experienced a temporary financial hardship that impaired your ability to make payments, you might be eligible for a loan modification.

If a homeowner is far behind on mortgage payments and has no ability to make payments going forward, you might not be able to keep the property and should consider alternatives. We know how difficult these decisions are, but a Plan B is mandatory and we will work with you through these considerations.

Do not use any company that claims they are loan modification experts and charge $2,000, $5,000 or more. There are no guarantees of a loan modification so your money could be wasted. Many loans have been fragmented and sold; in those instances, modifications are extremely difficult to accomplish. We will help you determine if this has been done.

Generally, a third-party advocate such as an attorney or a knowledable non-profit will help get the responses you need. If managed properly, loan modifications are possible.

It’s important to consider all alternatives. If the modification is denied, foreclosure is rapidly approaching.

• Paperwork/Organization. Banks will NOT call borrowers if any data is missing or inaccurate. It is important to be thorough and provide all documents when applying for a loan modification.
• How much can a loan be reduced? We've seen everywhere from $50 per month up to $2,000 a month. We've seen $60,000 in overdue payments put on the back of the loan with no interest. We've seen five-year modifications at 4.28% interest and thirty years at 3% to 5% interest. There is no formula, so consider what will stabilize you and your family and ask for that. We have NOT seen principal reduction on the home's value.