Legitimate Modifications

• The best way to avoid a mortgage modification scam is to call your existing mortgage servicer. This is the company to which you send your mortgage payment each month. You only can earn a mortgage modification through this company. Don't call any other company or individual that says it can handle your modification for you. You also should avoid those companies who, for a fee, say that they can help you work with your lender to achieve a mortgage modification. You can handle the mortgage modification process without the help of any outside company. You should only send your personal financial information to your existing mortgage servicer.
  
  

The Modification Process

• The modification process is not a simple one. You'll have to provide your mortgage servicer with proof that you can no longer afford your mortgage payment. You can do this by providing copies of your last two paycheck stubs if your monthly salary has fallen. If your spouse has a lost a job, cutting your household income significantly, you can send your lender copies of your most recent credit card bills to prove that, because of a lack of funds, you've run up your credit card bills. Other documents such as your bank savings and checking account statements or your most recent federal income tax return also can prove a dramatic drop in income. In a legitimate mortgage modification, your lender will require this proof of financial setbacks.
  
  

Government Help

• The federal government in 2009 launched its Home Affordable Modification Program as a way to encourage mortgage lenders to modify the mortgage loans of struggling homeowners. Under this program, the government provides lenders financial incentives for every loan they modify. If you want to modify your home loan through this program, you'll still have to contact your mortgage servicer to start the process. The government is not modifying loans on its own; it's only encouraging lenders to do so. Don't call any outside companies promising help with government modifications. Again, you'll need to work directly with your lender for any legitimate modification.
  
  

Remedies

• Your lender can lower your monthly mortgage payment in one of several ways. The easiest might be to drop your interest rate. Your lender also can rework the terms of your loan, perhaps turning your 15-year fixed-rate loan into a 30-year fixed-rate loan, lowering your monthly payment in the process. Your lender can reduce your payment, too, by forgiving a portion of your loan's principal balance.