Facing foreclosure can be a very scary time because most people do not know what will happen next or whether they will get to keep their home. They believe from what they hear on the news that all of the possible outcomes will result in them losing their home and suffering a tremendous financial blow. While this is true for experiencing a foreclosure, there are several options available that will allow people to remain in their homes and avoid foreclosure completely.

A loan modification can be negotiated between the homeowner and the bank to restructure their current mortgage payment into more affordable payments and allow them to remain in their home. For someone that has missed several mortgage payments and is facing foreclosure, yet still want to stay in their home, talking to a foreclosure defense attorney can help them understand how the process works and whether it is an option.

A loan modification is when the borrower negotiates a modification of their mortgage with the bank with the goal of making it more affordable for them to make the payments, since a financial hardship that they have experienced has made it difficult to make the current terms of the mortgage. In many cases the borrower has lost their job or has had their income lowered or experienced an unexpected expense that makes their current mortgage payments unaffordable and creates the potential for them to miss payments in the future.

Many lenders, especially large corporate banks, are difficult to negotiate with, but a loan modification attorney can help make the borrower's case and present it to the lender so it can be showed the borrower faces financial hardship and could not obtain alternative financing to pay the mortgage. In some cases it may be more detrimental to the bank to accept the modification of the loan rather than proceeding with foreclosure, which is why having an experienced loan modification attorney there to help make your case can be so valuable. The modification of the loan will adjust the payment requirements and/or the interest rate in order to lower the fixed monthly payments. A self assessment of your budget and financial situation is important so you know exactly what you can afford when presenting your case to the lender to better improve your chances of having your loan modification approved.

If staying in your home and being able to maintain good standing with your lender are important to you, then you may need to make sacrifices in other areas of your spending to make the loan modification work. The help of a loan modification attorney can help you with this process and get you best prepared to make your offer of loan modification to your lender.