Even though mortgage loan modifications have helped so many people to save their homes during the current economic crisis, there is still a lack of knowledge amongst homeowners (many of whom may well be in dire need of this service) as to exactly what loan modification is, how it works, how to apply, who qualifies etc.

Let us start by dispelling a common myth about loan modification:

Loan Modification is appropriate only in the case of foreclosure.

It is a common misconception among homeowners that loan modification is an option only under extreme circumstances, such as when you are on the verge of foreclosure.

This is not so. Literally millions of people in America qualify for loan modification without being in foreclosure. Broadly, anybody whose monthly expenses exceed their monthly income may be a good candidate for loan modification. You can have money in the bank, you can have an expensive car parked on your drive and still qualify for loan modification. You just have to be moving backwards financially, so to speak: spending more each month (in essential outgoings) than you have coming in.

Families can get into financial difficulty for any of a number or reasons – loss of job, reduction in pay, sudden unexpected medical costs, a partner or spouse may lose their income.

Loan modification is a renegotiation of the existing mortgage, to effect a reduction in interest rates (and, sometimes, a reduction of loan principal too), leading to lower monthly payments which are affordable and sustainable to the homeowner.

It is a long-term solution – it can help you save your home permanently. It\’s no good if the new lower monthly payment is too high and you are straight back facing foreclosure six months down the line. For this reason, the loan modification in and of itself may not be enough – it may be necessary to demonstrate to the lender that you can lower your outgoings and/or increase your income such that the modified loan is a realistic solution.

While it is possible to contact your bank\’s loss mitigation department directly to initiate a loan modification request, it is not really advisable to go it alone. It makes as much sense as representing yourself in a court of law.

You really need the services of a good loan modification company, which has its own team of dedicated loan modification attorneys. They know how to speak to the banks to achieve the desired result. It is not uncommon for good loan modification companies to achieve a reduction in interest of 30 – 50% on behalf of their clients.

This is well worth whatever fee the company charges – it could mean no less than the difference between losing your home (with all the pain and upheaval that entails) and keeping it.

Mortgage loan modification is permanent change in one or more of the terms in your mortgage the may permit your mortgage to be reinstated. It means current the lender might permit the terms of a homeowner’s mortgage may be transformed. The interest rate, the length of the loan and even a reduction in the principle are changes to the terms that can be made. This entire process can be done without having to qualify to refinance the loan.

A mortgage loan modification can stop you from losing your home, enhance your cash flow and get you on the path to financial recovery. In some cases, the cost of mortgage loan modification might be integrated into the new loan.

Statistics have shown that about one out of 100 houses are in reality undergoing the short sales process – a count which is considered a 79% increase of the number of homes subject to short sale (foreclosure) in Northern California, which continuously proves that the trend of short sales homes are rising in the country. Of course, it includes foreclosed homes in Northern California, where the local banks have their own listings of foreclosed homes for short sales for the general public. If you have plans to live in the place or consider investing in purchasing or selling houses in the area, then you might wish to consider those foreclosed homes in Northern California.

In such circumstances, mortgage loan modification can help you to save your home from foreclosure. With the help mortgage loan modification, you will be able to get out of your current loan in just 5-60 days, reduce your mortgage payment by 1/3 or more with a lower interest rate and a diminished loan amount. Now, who can qualify for a mortgage loan modification?

Anyone: •Whose mortgage in is foreclosure or close to it

•With an adjustable rate mortgage

•With a fixed interest mortgage that is 2% above current 30 or 40 year fixed market interest rates

•Who has been late on their mortgage from one year

•Who is currently late or will be late this month

So a mortgage loan modification to overcome Nor Cal Short sales might be practical choice if you meet the criterion mentioned above.

Sell More Short Sales is a short sale and loss mitigation advisory firm has assisted homeowners on a national scale in the elaborate business of Nor Cal Short sales, mortgage loan modification, deed in lieu, forbearances, and other loss mitigation solutions.