We have a real problem in the housing sector, affecting thirty million homeowners in the USA. More and more home-owners are losing their jobs, or having their salaries reduced. More and more home-owners are, through no fault of their own, falling late with their credit card, mortgage or car payments. These home owners are in real danger of defaulting on their mortgage loan and having their house suffer foreclosure. But there is an answer, and many home-owners are not even aware of this solution: it's known as loan modification - sometimes referred to as loan mod.

Mortgage loan modification does not entail refinancing, so there is no credit check. It doesn't entail debt consolidation. What it is, is renegotiating the existing loan to achieve a reduction in interest rate and, under special conditions, a lowering in loan principal as well. And it doesn't involve extending the term of the loan. A new, reduced, payment amount is achieved which is sustainable to the homeowner. Loan modification is a true win-win solution for all parties concerned. To the home owner it can mean the difference between keeping or losing their house. As for the banks, it can mean no less than the difference between staying afloat or sinking.

There is no reason why home owners can't arrange their own mortgage loan modification by contacting their bank's loss mitigation dept. But it seriously is not recommended - the banks usually offer only a slight decrease in interest, or no reduction at all. Much better to use the services of a reputable loan modification firm, which employs its own team of dedicated loan modification lawyers, who do nothing but speak with banks all day every day and know how to accomplish a telling reduction. Doing it alone is akin to representing one self at a court of law - it is seriously not recommended. A good mortgage loan modification firm can achieve a 30 - 50% reduction in the interest rate without an extension to the length of time of the mortgage loan. It is well worth the fee they may charge to achieve this.

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