MORTGAGE MODIFICATION

Fortunately, the Obama administration's housing  plan encourages lenders to modify the mortgages of homeowners who can no  longer afford their monthly house payments because of hardship. The  definition of hardship includes lost income, increased expenses and  other indications of being at risk of default.

There are some qualifications to be eligible for a loan modification,  and it's not an easy process but if the borrower qualifies, then the mortgage provider  figures out what it will take to decrease the monthly payments to 31  percent of pretax income.

 Loan modifications are not always permanent however and most borrowers  would see their payments rise again after five years but it could be  just what you need to save you from possible foreclosure. 

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