How to Modify your Mortgage Loan
A mortgage loan modification changes your current loan terms without you having to go through another expensive closing process. A mortgage modification makes your loan more affordable by lowering your interest rate, for example. You may be able to modify your mortgage loan if interest rates have been falling and your lender wants to retain your business. If you can't afford your mortgage payments, your lender may also agree to modify your loan to avoid foreclosure.
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Instructions
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Consult a nonprofit housing counselor for advice on mortgage loan modification. The U.S. Department of Housing and Urban Development (HUD) maintains a list of approved housing counseling agencies you can contact. You may have to pay a fee for the service.
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Determine whether you are eligible for the government's Home Affordable Modification Program (HAMP). HAMP helps homeowners who can't afford their mortgage payments avoid foreclosures. To qualify, you have to have obtained your mortgage before January 2009, use the property as your primary residence, owe an amount that is below the federal limit and pay more than 31 percent of your gross income for mortgage. If you qualify for the program, you have a better chance of getting a loan modification.
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Contact your mortgage lender and ask to speak to someone in charge of mortgage loan modifications. Tell your lender why you need a mortgage loan modification and present supporting evidence. For example, if you can't afford your mortgage payments, you may show documents showing that you have lost your job.
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