If you are one of the several people who are experiencing a huge financial problem with your home mortgage, this loan modification program might be your easy way out. This program can be compared to a mortgage loan refinance since it is aimed to produce a more convenient and affordable plan for your current financial situation. What differentiates the program with a refinance is because it does not let you get a new loan. The loan modification plan simply modifies the terms of your current mortgage loan.
In order to apply for the program, you have to meet the eligibility criteria. This criteria however, depends on who you are applying the loan from. But there is one similarity on the qualification criteria being observed by most banks. This is if you have endured a financial hardship or if you have gone through a major change in your current financial situation. Such major changes are affected by factors like a loss of a job. Also, if you have not been able to pay three or more monthly payments on the home which is under the loan, this makes you qualified.
Other factors which contribute to the eligibility criteria include having the home as your primary residence, filing for bankruptcy has not been done, and even if you did not purposely decide to get the loan modification just so you can get a lower rate. It would also be great if you are very much willing to participate with the terms of your lender.
If you are well aware that your home is going to be on the verge of foreclosure soon enough, you have to stop asking what is a loan modification program. You have to get up and find out if you can qualify for the program so that your home can be saved. If you don't do anything, you also do not get any help.