A Loan Modification Can Turn Your Upside-Down Mortgage Right Side Up

Earlier this year, banks were more reluctant to offer a loan modification to delinquent borrowers; however, government pressure has changed that.

In fact, it's not even necessary to be delinquent, in some cases, for your lender to consider a loan modification. Banks want to stop the bleeding and many would prefer to cut the home owner's payment in half rather than foreclose.

The top major banks, and even Fanny Mae and Freddie Mac, have called a moratorium on filing foreclosures through the holidays. This means even if you are falling behind in your payments, you have more time on your side to work out something with the lender . . . read more about loan modifications.

More Articles by Elizabeth Weintraub:

• Buying Another Home After a Foreclosure
  
• Walking Away From Your Home
  
• How to Do a Short Sale

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}