If you have a mortgage with your bank then you may be able to modify your loan terms.
Many Banks have recently announced that they are proactively modifying mortgage loans; particularly to those who previously went through more risky lenders.
B of A purchased Countrywide as the major lender started to go under.
Countrywide has been the poster child for an organization that made risky mortgage loans.
Therefore, Bank of America has been left with a lot of loans that are either in default or the homeowners are struggling with payments.
Many people are struggling to make payments on their homes because they got adjustable rate mortgages.
Some of these rates have reset at higher rates and payments have increased significantly.
In particular, the economy has decreased in overall productivity and these losses have trickled down to everyday homeowners.
So, in fact, other banks including Wells Fargo, Citibank, or Chase home mortgage are all making adjustments to their existing home loans.
In addition, just yesterday Barrack Obama announced that he is trying to pass an additional $75 billion to help homeowners adjust their existing mortgages.
So, is it possible to make a loan modification to your existing loan.
Absolutely.
And it appears that the government is encouraging it.
However, you have to realize that you did sign a contract for a specific rate and term; and therefore, you don't have much of a legal right to change your loan terms.
Changes being made are really just out of the goodwill of Bank of America or whatever mortgage company you may be dealing with.
Typically, changes will only be made to borrowers that are in a severe financial situation and are late on payments and are close to foreclosure.
Unfortunately, if you are current on your home loan, you do not have much chance of getting a loan modification.