What is a Loan Modification?
Loan Modification is a process in which a homeowner's mortgage is modified by an attorney. Both the lender and homeowner are bound by new, negotiated terms that work for both parties.
For an in-depth description, see What is a Loan Modification?
The most common loan modifications result in:
- Lowered Interest Rate
- Reduced Principal Balance
- Agreeing on a fixed interest rate
- Increased Length of Loan Term
- Forgiveness of Late Payments, Defaults, and Fees
- Financial Relief
- Foreclosure Prevention / No Loss of Home!
Or any combination of the above! |
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Who Qualifies for a Loan Modification?
To qualify for a mortgage loan modification, you must:
- Have originated your mortgage before 1/1/2009
- Be the home owner and an occupant
- Have an unpaid balance that is equal to or less than $729,750 (for a single-family home)
- Have trouble paying your mortgage due to financial hardship. This could be because you have had an increase in your mortgage payments, your income was reduced, or you suffered a hardship (like medical problems) that increased your bills. You also qualify if you can show that you soon will be unable to make your payments.
- Have a monthly mortgage payment that is more than 31% of your gross (pre-tax) monthly income
For more information, see our Requirements page. |
Obama's Home Affordability Plan
According to President Obama's new plan:
- The lender would first be responsible for bringing down interest rates so that the borrowers monthly mortgage payment is no more than 38 percent of his or her income.
- Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent.
- Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
- Borrowers will be put on a trial modification at the new interest rate and payment for three months. If they make all their payments on time, the modification will be implemented at the new rate and be fixed for five years.
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Latest Loan Modification News
Stay up to date with current news and information:
President Obama has offered a $1000 incentive for home owners that opt for Loan Modification instead of Short Sale or Foreclosure!
Click here to see the most frequently asked questions about mortgage loan modifications! |
Loan Modification Testimonials |
"I cannot stress enough how thankful our family is for finding your website. After my wife was layed off from her job due to downsizing, we found ourselves struggling to afford our monthly mortgage payments. We tried to refinance only to find out that we weren't qualified. After hearing about loan modifications, we looked for more information and found your site. Once we spoke to Drew about our options, we felt a lot more comfortable about the whole situation. We found out that we DID qualify for a loan modification and two weeks later we had successfully modified our loan! Now we can afford to make all our payments again and most importantly keep our home. Thank you, from all of us at the Guzman family!"
- Mark Guzman
Escondido, California
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"We were about a month shy of losing our home until we found San Diego Loan Modification. We filled out the easy contact form and Mr. Athen called us back within an hour to talk about our situation and let us know our options up front. Drew was able to successfully modify our loan and get us a fixed interest rate with lower mortgage payments. We owe our home to you. thank you so, so much!"
- Rachelle Bailey
San Bernardino, California
"After I was injured in a car accident, I had to take an extended leave from my job, and without modifying my loan, I wouldn't have been able to keep my house. I definitely recommend San Diego Loan Modification; they have the knowledge and experience necessary to negotiate a loan mod that will work!"
 - Michael Vera
San Diego, California
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We provide loss mitigation and loan modification services in...
Alpine, CA | Bonita, CA | Carlsbad, CA | Chula Vista, CA | Coronado, CA | Dana Point, CA | Del Mar, CA | Descanso, CA | Dulzura, CA | El Cajon, CA | Encinatas, CA | Escondido, CA | Imperial Beach, CA | Jamul, CA | La Jolla, CA | La Mesa, CA | Lakeside, CA | Lemon Grove, CA | Lincoln Acres, CA | Oceanside, CA | Poway, CA | Ramona, CA | Rancho Santa Fe, CA | San Bernardino, CA | San Diego, CA | San Diego, California | San Marcos, CA | San Ysidro, CA | Santee, CA | Solana Beach, CA | Spring Valley, CA | Vista, CA
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