Pittsfield, MA -- (SBWIRE) -- 07/12/2013 -- Real-estate-yogi.com is here to help folks understand this process by offering some insight into it, such as:

- Defining Loan Modification
- Where to Apply for Modification
- Governmental Assistance
- Refinancing the Mortgage

Loan Modification Explained

Generally, there are two common methods of reducing one’s mortgage payment, modifying the loan, or refinancing it. The answer to “Can loan modification stop foreclosure?” is yes, it certainly can. When a mortgage loan (or any loan) is modified, some changes are made to it that result in an overall lower monthly payment. One such change may be a reduction in the principal of the loan; another may be lowering the interest rate. After having a mortgage loan modified, because the payment is more affordable, a homeowner can save his home from foreclosure.

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The Application Process
It’s easy to apply for loan modification, and the answer to “Will loan modification stop foreclosure?” is absolutely. Apply for this financial product at any bank, credit union, or other financial institution. Simply ask for the request form and look it over to see what information will be needed in order to approve the modification. Lenders usually require the same basic information, such as proof of a fiscal hardship, at least 2 weeks’ worth of wage receipts, and a copy of the current mortgage. Other, lender-specific data may also be requested; be sure to find out what, if any, it may be.

Aid from Uncle Sam
Happily enough, the U.S. federal government can answer “Can a loan modification stop foreclosure?” with a resounding Yes! Through the Making Home Affordable program developed by the Obama Administration, HAMP (Home Affordable Modification Program) can help troubled homeowners. The program modifies mortgage loans in order to prevent foreclosure. Qualifying for the program isn’t too difficult: Simply provide a copy of the current mortgage, the nature of the financial hardship, and proof of income. More requirements can be found on the government’s website.

Mortgage Refinance to Halt Foreclosure
There’s another kind of stop foreclosure loan that can be obtained at most financial institutions. It is loan refinancing, and it’s a bit different than modification. Refinancing means paying off the original loan and drawing up a new one that has better terms. These new terms may include having a longer repayment period or a lower rate of interest. Apply at a nearby lender.

About Real-Estate-Yogi.com
http://www.real-estate-yogi.com is a full-service, no-cost website located in Pittsfield, Massachusetts whose aim is to supply consumers with intelligent, understandable responses to their property financing questions. For a free initial conference, dial 800-987-1397.