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If you are facing difficulty in paying your mortgage dues and you really want to save your home then it is important to understand what loan modification is. This article will aim to give you a better understanding about loan modification procedures. There are different types of loan modification procedures. One of the most common types is to reduce the rate of mortgage to achieve a lower monthly payment. The rate of interest can be lowered by as much as 2 percent. Another way is to reduce the principle in order to achieve a significantly lower monthly payment rate. There will be a lot of documentation that you will need to prepare before proceeding to talk to your bank about loan modification. You will need to provide documentation about your income, your income tax return for the previous year and even documentation about any other loans you may have. There will surely be other required documentation but having these ready will enable you to at least start the process. Once you have all the necessary documentation ready then be prepared to explain to your mortgage company the reason why you are applying for loan modification. If you lost your job then you will need to explain the reason why you lost your job. If you had any recent costly medical expenses then you will need to provide all the documentation concerning this. Be prepared with a short version of your story because you may have to talk to several people before being able to talk to the person who will approve your loan modification request. It is likely that your mortgage company will work with you to get your loan modified but if they don’t then you will need to find outside help. A good place to ask for help is the Making Home Affordable Program. They will provide you with the correct resources to get your loan modified. If you do manage to get a loan modification, don’t be in a rush to sign any documents. Be sure to understand what you are signing. If you need to have everything explained to you then be sure to ask for an explanation. Each bank or mortgage company will have different loan modification procedures so ask what these are in order to get yourself prepared and to have a better chance of getting your loan modified. Get more help to avoid foreclosure at http://www.Stopping-Home-Foreclosure.com/ForeclosureProcedure.html
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