Foreclosure is not just a scary word; it’s a terrifying thing to be facing. The possible loss of one’s home to the lien holder is often stressful and nerve-wracking. When dealing with the formidable foreclosure process, one option is a mortgage modification company. The following will look into what these companies do and if hiring one can really help.

Pittsfield, MA -- (SBWire) -- 02/01/2013 --Foreclosure rates have declined over the past several months, but some folks are still dealing with it while trying to figure out how to stop it. There are several ways to avoid having one’s home foreclosed on. Hiring one of the many mortgage modification companies out there is just one. The interesting thing about these companies is that the best one may be one’s original lien holder. A mortgage loan modification simply means that changes are made to the loan so it’s less difficult for the homeowner to make the payment each month. These changes may include lowering the interest rate, reducing the principal, or lengthening the repayment terms. Many banks and credit unions offer an in-house modification service, but if they do not, look to the government.

The Obama administration developed a plan to help troubled homeowners retain possession of their houses. It’s called HAMP (Home Affordable Modification Program) and it works with lenders and property owners to reach satisfactory terms. The way it works for the lenders is this: When they sign on to participate in the program, they get hefty incentives that make it worth their while. They agree to become a mortgage modification company through the auspices of HAMP, and homeowners are able to apply for the program at any lender that participates in it. The way it works for the property owners is this: They can choose to modify their mortgage loan through a lender, and, if approved, their mortgage payment can be cut by up to 40%. There are requirements that must be met in order to qualify, some of which are having gotten the original mortgage on or before January 1, 2009; having a financial difficulty that can be proven; proof that a homeowner can afford the reduced payment; and that said homeowner has not been convicted of a felony in the past 10 years.

There are also mortgage modification companies that function independently from the government or local lenders. While the bulk of them are legitimate, some are out to scam consumers. If any of these asks for “up-front” fees or personal information without a signed contract do not deal with them.

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hhtp://www.Credit-yogi.com, an online marketing company located in Pittsfield, Massachusetts, has more information about mortgage modification and where to apply for it, and is always happy to share it.