The American housing market is facing the worst crisis it has ever seen in history and the worst thing is there does not seem to be an end in sight. The number of homeowners facing foreclosure is at an all time high and is continuing to climb. Homeowners everywhere are having trouble paying their mortgage and are falling behind more and more each month, because of this loan modification has increased in popularity. Loan modification has helped many people and has the possibility of helping thousands more. Losing ones home is always a scary thought but taking the first step and applying for a loan modification can help you keep yours.
What loan modification means is you take out a new loan with the lender with a few changes, you will have lower rates which will lead to lower payments overall. The length of the loan can be stretched up to 40 years as well to make the payments more affordable.
If you are able to find a lender and are able to modify your loan the foreclosure of your home will be put on hold for 30 days so that the terms of the new loan can be reached. President Obama and his administration along with Chase Home Finance, Bank of America, Wells Fargo and Countrywide have teamed up together in order to make loan modification a possibility.