Loan modification is a process wherein borrowers can get their lenders to change the mortgage terms so they can better afford it. It is usually offered to homeowners who have lost part or all of their income – and thus cannot keep up with mortgage payments – due to illness, job loss, death of a family member, or other unavoidable causes.

Loan modification payment plans allow the homeowner to get an affordable loan modification while still including all the essentials for negotiating with lenders, such as application forms, checklists, and informational resources on loan modification-related matters such as mortgages and mortgage types, lending terms, predatory and sub-prime lending, and tips on getting the best deal from mortgage servicers.

The loan modification process involves a four-steps, starting with an initial consultation where they assess the client’s situation and determine whether or not a loan modification is the best option. Otherwise, they usually suggest viable alternatives such as short sales or deeds in lieu of foreclosure.

Once the homeowner is deemed qualified for a loan modification, he or she can start gathering the documents required for the application process. Each lender has its own requirements, but some of the most commonly requested documents are W2 forms, the latest mortgage statement, and a hardship letter explaining why the borrower fell behind.

Finally, the offer is sent to the borrower for approval, along with all the loan modification documents. Depending on the lender’s terms, the modification may start with a trial period, after which the modification becomes permanent (assuming the borrower does not go back into default with the new rates).

Another option is to buy this ebook and save thousands of dollars. Thanks to the Homeowner Affordability and Stability Plan there has never been a better time to pursue a loan modification. But with this opportunity there is also the downside that your lender will not have the time or patience to walk you through the process, to get approved quickly for a loan modification you will need to prepare all documentation before you begin the process of speaking with your lender. To prepare these critical documents you can use the Complete Loan Modification Kit which provides you with all the forms, document templates and an extensive how-to guide.  Most loan modification applications take anywhere from 30 to 60 days.