The world's economy still hasn't recovered from the collapse of the housing boom in 2008. A lot of lenders had been making a lot of questionable loans for a long time. Eventually, the whole house of cards collapsed. Unfortunately, a lot of regular folks were caught up in the resulting fiscal mess. Maybe you were one of them and now you're facing the prospect of losing you home. The thing is, you don't have to go down without a fight. Washington has passed a massive home loan modification law that can help you keep a roof over your head. This article is going to show you how home loan modification works.

A home loan modification is just what the name implies. It's way to modify the terms of your original home loan. You are able to lower your monthly mortgage payment to a price you can afford and, in this way, you're able to keep your house. So, why would your lender be willing to do this? There's two reasons. First, they have to. It's the law. Almost every lender is now required by federal law to modify the loans of qualifying buyers. Second, they want to. Lenders are feeling the pinch of these tough economic times too. No lender wants to foreclose. It's a last ditch effort on the part of the lender to recoup something out of a deal gone bad. Remember, lenders are in the business of lending money, not in the business of owning property.

In order to qualify for a home loan modification, you need to be in default on your loan and you need to be willing to wok with your lender to cure the default. That's it. Specifically, the loan has to be at least ninety days overdue, the default cannot have been intentional on your part and you cannot have filed for bankruptcy. In addition, you may have to document the reasons for the financial hardship that caused the default in the first place. For most honest hard working people, these conditions are easily met.