So what are some of the possibilities with getting a Loan Modification?

1) Rate Reduction & Term Extension.

2) Principal Balance Shifts and Principal Balance Reductions (not a lenders favorite thing to do but it does make sense sometimes).

3) Adjustable Rates Converted to Fixed Rates. Incoporation of Late Payments into Principal Balances. There's not enough time here to capture all the possibilities.

Anyone can submit for a loan modification now. It used to be that you had to be at least a month behind in your payments, but that is no longer the case. This sounds horrible, but I'll say it anyway. The worse your situation is, the better off you are for a Loan Mod. The speed in which your Modification is handled is measured by the degree of your particular hardship.

Who needs a Loan Mod? Here are criteria. Anyone with almost any kind of hardship. If you are upside down (the property value is less than your loan amount), that's a hardship. Adjustable Interest Rates. High Interest Rates. Neg. Am Loans. Monthly Deficits. Negative Equity. Ballon Loans. General Hardships. Can't Refinance. Loss of Income. Divorce. Medical Bills. Incarceration. And more. You get the idea. And when you're in a Loan Modification process, you do not have to make your monthly payments.

You can either do it yourself or hire a company to help you out. There are a lot of different loan modifications companys out there, so make sure they are qualified. More to come on choosing the right company if you are having trouble on your own.