What is a loan modification program? Mortgage loan modification (home loan modification) is where the lender may lower your mortgage rate, or add any dues to the mortgage balance and extend your loan period. This is to ensure that your monthly payments are reduced. There can also be a reduction in the principal balance you owe. The purpose is to make your payments affordable so that you can save your credit and keep your home. When is loan modification suitable for you? Loan modifications (mortgage modifications) are suitable for you when: * You have experienced a long-term reduction in income. * Your monthly expenses have increased. * You don't have enough income to pay off mortgage dues. Are you eligible for mortgage modifications? You may be eligible if: * The lender hasn't declared a foreclosure yet and even if he has done so, he should have removed the loan from the foreclosure status. * You're delinquent on the loan for 3 months or more. * The loan has been originated for more than 12 months. * You have stable surplus income to help you pay at the modified rate/terms. * The property is in good physical condition.