Loan modification is an option when a person cannot repay their loan.
The person will need to contact their lender first and see if they will be willing to work out a payback plan.
The plan should be agreeable for both people involved.
The lender might be difficult to work with, but it is not him that needs to be worked with.
There are firms that have many professionals who work hands on with the loan.
Their job is to find a way to get the most money possible to the lender.
When a person is wanted to apply for a loan modification, they should create a detailed paper that states how much income they get and how much they can afford.
Also, it is a good idea to make clear how much time would be needed to pay off the loan and how much money will be given with each payment.
The main reason a person can not get a loan modification is due to their equity they have in their property.
Equity is basically what the house/property is worth.
If the lender can get the money he wants out of the property, then a foreclosure will be definite.
What the person needs to do is to research and find out how much the property is worth in comparison with the other properties in the vicinity.
After the person gets a general idea, they should take it to the lender and convince him that foreclosing the house would not pay off and that a loan modification would be a better choice.
Loan modifications are made by professionals that are well paid and whose skills are better seen and their strength increases when there is a money crunch.
Borrowers will usually receive bad treatment, because these professionals hope that the person will get tired of it sooner or later.
They may not answer calls and when they do they may give the person a hard time, but in the end it is worth it if the person can get a favorable response that gets them a loan modification.
After that is over, the person can breathe easy.