Most lenders will offer loan modification programs that should give you at least two options but how do you choose which is right for you.
In order for you to choose which option will give you the better benefits you need to consider the interest reduction, principle deference, the length of time of the loan and when the balloon payments start.
If the hardship you are facing is only going to last for a short while like 2 to 3 years it will be better to ask for a program that will last for 5 years with a slightly lower interest and the option of principle deference if the lender provides for that option.
If there is no option of deferring the principle and you predict that you will not be able to pay the current monthly repayments in the near future then a longer 30 to 40 year program would be a good choice.
There are two ways to find out what the lender does offer and the first being using a loan modification company or you can phone the loan modification mitigation department. Getting the information is the easy part and the difficult part is getting your application approved.
How to go about Applying
Once you have decided which option is right for you it is important that the application is done correctly. You can do it on your own or you can use a loan modification company such as Loan Modification Depot. Using loan modification experts can be on the expensive side but if you consider the possibility of losing your home then price should not be the deciding factor.
By using experts not only will they be able to advise you on the choice that you have made but will also ensure that the application is done correctly and professionally. Lenders also feel more comfortable if your application is being dealt with professional companies and gives them confidence that information is accurate and that the loan will be paid.