Loan modification is a fresh start for borrowers who are caught deep in the financial trouble. With arrowhead advance loans bad credit no credit check modification the borrowers can get their loan modified to bring down the mortgage amounts to an affordable level. The terms of the mortgage can be modified for resetting of the interest rate, principal readjustment or payment deferment. Depending on their specific situation the borrowers can get a low interest rate which can be fixed for rest of the loan term. A simple modification can also help the borrowers to get rid of negative amortization.

Loan modification is free of cost for eligible borrowers and is one of the best alternatives available to the borrowers to save their homes and themselves from the embarrassment of foreclosure. Though at the face of it a modification may appear to be a complex process, if understood properly a modification can be the saving grace of millions American homeowners caught in the turmoil of economic slowdown. Federal government is backing up the lenders to extend loan modification as an option to troubled home arrowhead advance bad credit loans companies not brokers borrowers. The broad eligibility criterion's for applying for a modification program are as follows:

oThe loan should be held and serviced by the bank from which the home loan modification is sought.

oThe debt to income ratio of the borrower is more than 31%. The modified mortgage payments are targeted to be around one third of the gross monthly income.

oThe loan modification is allowed only for the first mortgages by the borrower.

oThe property on which loan modification is sought by the borrower should be the primary residence of the borrower. This is to discourage the owners seeking home loan modification on properties for investment purpose.

oThe interest rate cannot be reduced to less than 2%.

The process of loan modification takes into account various factors such the current financial condition of the borrower and his ability to sustain the modified payments. The process of this program is:

oPreparing income and expenses statements: Chalk out the mortgage amount that you will be able to spare towards the payment of the arrowhead advance indian loans for bad credit after taking care of your expenses. Draw up an income and expenses statement. The income statement consists of pay stubs and tax returns. For the expense statement, collect all the bills paid or unpaid, credit card statements, insurance payments, student loans, medical bills and your utilities bill and all other expenses that you are currently or likely to incur in a month. Fill up the paperwork required by the bank in all earnestness. The documents have to be accompanied with a well drafted financial hardship letter.

oAfter the submission, follow-up with the concerned department periodically to check on the status of your application.

Millions of American home owners are realizing their dreams of keeping their homes through this simple modification program. Make a fresh start with this program and putting your debt burden behind you.