Homeowners in this economy need to know about refinancing options. Loan modifications are the process whereby a lender and a homeowner agree to change the loan terms so that they are favorable and realistic for both parties. In other words, getting a modification to your loan means that essentially you and your bank are agreeing to throw out your old mortgage contract and write up a new one that works for both of you.

Why would a bank agree to do this instead of just foreclosing on your house? Believe it or not, banks actually want to avoid foreclosure whenever possible. Foreclosing on a house costs them a lot of time and money, and ultimately it results in a vacant house on their hands that earns them $0 a month in mortgage payments. Whenever reasonably possible, a bank would much rather compromise on the loan terms and still get paid, even if it is a lesser amount than originally agreed on.

Banks don't offer loan me predatory lenders modifications to just anyone. They need to meet certain criteria for eligibility, which usually include:

Each lender will have its own specifications for participants in its loan modification program, so each interested homeowners need to contact their bank or read up on their bank's policies via their website.

There is also a federal program about loan modifications that is another option for homeowners. People whose loans originated before 2009 could be eligible for federal loan mod through the Making Home Affordable act from now until 2012.

With loan modifications, the ultimate point is to lower the monthly payment to an amount that is now affordable to homeowners who may have lost a job, gone through a divorce or unexpected injury, or have had to accept a pay cut at work. The monthly payment is lowered through any combination of reducing interest rate, extending the loan life, or even forgiving loan principle. Keep in mind that while a modification will lower monthly payments, it may not save money in the long run (especially if the loan is extended by several years.) Therefore, loan modification should only be used as a last resort when homeowners just can't seem to make ends meet in any other way.

To get the modification process underway for your loan, contact your lender and ask about the program. Have your financial information at hand to answer questions that the loan modification specialist may have for you. If such a loan me no checking payday loan might be for you, then you'll be sent the appropriate application paperwork to fill out. Attach appropriate income verification and financial documentation, and send along a handwritten hardship letter to explain why you need a modification and how it will help you to stay on your feet.

Homeowners shouldn't be embarrassed if they need the help of loan me no credit check payday loan modification. In this tough economy people are losing their jobs and experiencing other financial crises that make it the only option. There is hope for holding onto your home!