THE LOAN MODIFICATION            

WHAT IS A LOAN MODIFICATION?

The loan modification basically is modifying your loan.

Example:

                        $200,000       Value of the home
                        $185,000       What is owed
                        $    1,500        Monthly Payment 
                        $         10        Payments behind
                        $  15,000       What is owed to bank in back payments
                        $    2,500       Attorney fees

So now to bring this loan current you can try a loan modification. You call the bank and tell them you have 6 or 7 payments and you want to do a loan modification.  This means the bank will put the other 3 or 4 payments on the end of the loan.   

Example: 

Let's say the payments you owe are payments # 22, 23, 24, 25, 26, 27, 28, 29, 30, 31.  Remember, a 30 year loan has 360 payments...(read more)