Loan Modification Made Simple Author:Thomas Powell An Insider Guide to Understanding Loan Modification and Preventing Foreclosure — Premise The premise of this book is to educate the reader on everything there is to know about loan modifications. We want to help you understand what a loan modification is so that you can best modify your loan yourself or make the decision t... more »o hire a professional. Maximizing the homeowners benefit is our goal. This book is designed to help the borrower get the most out of a loan modification by providing crucial information. It includes everything from the banks point of view on loan modifications to how to negotiate your own modification. Loan modification is not a new practice; it is just a rarely used one. When property values are remaining consistent or are rising, getting approved for a loan modification proves to be very difficult. When a home facing foreclosure has equity the bank takes a minimal loss or no loss at all. With nothing to gain the bank has no interest in modifying a homeowner with a track record of financial difficulties. They can sell the property, find a new homeowner who can make the payments on time and remain profitable. They do not want to deal with a risky borrower in a stable economy. Unfortunately, for homeowners and banks alike, today s financial climate is in disarray. The United States is in a precipitous economy. Equity in homes has dwindled and, in many cases, has become negative. Banks would rather reduce the payments and/or balance than foreclose on a property. The fact that banks are willing to negotiate lesser payments brings about the part of the real estate cycle know as The Modification Period . Neither banks nor borrowers have power in these difficult times. In fact, they must work together to not only keep families in their homes but also turn this recession around. Loan modification might mean immediate financial losses for our banking institutions, but the long term losses are minimized versus mass foreclosures. Learn how to use the threat of foreclosure to your advantage and get your loan modified to the payments that you can afford. Since loan modifications account for a small portion of the real estate cycle, very few people are educated on their inner workings. It is one of the less restricted practices and contains many undefined areas. There are many scam artists. Whenever contracting a loan modification company, be aware of paying large upfront fees. The last thing a desperate person about to lose their house needs is to be ripped off.« less