A loan modification is a restructure of a homeowner’s current loan or loans. This can include principal reduction, extension of the loan’s terms and/or forgiveness of past due amounts. The banks will sometimes combine these elements to give the homeowners a significantly lower monthly payment. In some instances this can save homeowners thousands of dollars per month in payment.

Modification can be done on your own. However if you do not structure your financials properly, it may be denied because it does not fit the proper ratios.

Modification approval rates have been steadily declining over the past year. Many times this is the result of bad faith in dealing by your lender. If you feel your lender acted improperly during the loan modification process, then a lawsuit against your lender may be an option.

Please contact us if you feel this is the case.