Through loan modification, homeowners may be able to adjust their unaffordable mortgage payments in an effort to avoid foreclosure. Through modification, a lender may agree to modify various aspects of a homeowner's mortgage which can include the interest rate, the duration of the repayment term, etc. In some cases, the total principal amount owed on the loan may even be modified.

The Making Home Affordable Act

A federal loan modification program called The Making Home Affordable Act was designed to help struggling homeowner's avoid foreclosure and stay in their homes. You might be eligible for a loan modification under the Making Home Affordable Act if:

  • You are the owner occupant of a one to four unit home,
  • At the time you apply, you are current on your mortgage payments (current means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months or, if you have had the loan for less than 12 months, you have never missed a payment),
  • You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house,
  • You have income sufficient to support the new mortgage payments, and
  • The refinancing improves the long term affordability or stability of your loan.

There are several different programs within the Making Home Affordable Act. You can call 888-995-HOPE (4673) for more information about whether you qualify.

A Loan Modification Attorney Can Help


If you are searching for an attorney to help you with your loan modification, you can begin your search here. Don't wait until you are behind on your payments to negotiate a loan modification. If you are struggling financially, ask about your options for refinancing. Even though their motivation is financial, lenders have an incentive to work with you to create an affordable payment plan.

Read some frequently asked questions and learn more about loan modifications and loan modifications.