Many people are trying to get a loan modification right now because of the rock bottom interest rates available.
The truth is that you can save hundreds of dollars a month if you are able to work out a deal for a lower rate but only if you act fast.
For this reason and several others, banks have installed plenty of ways to delay, stall, and frustrate you during the application process in hopes you will just give up.
If you are persistent enough, they will more than likely just deny you once enough time has passed.
That is why you need a loan modification company.
When you go over your plans with one of these companies they are able to tell you what you are eligible to get as far as a restructured deal, then they work directly with the bank to get the result you want and fast.
When you try to modify your loan a lender is usually only interested if you are struggling to make your payments on time.
The reason for this is because many people are unable to pay their debt on time and the more they struggle the more lenders become concerned with the possibility of foreclosure.
When you take out a debt for a home, you borrow a certain amount of money, and agree to pay it back monthly over a specific amount of time.
Not only does the lender get the original money back, they add on interest to the debt and that is how they make their profit.
What some people are unaware of is that the lenders profit is collected first before they start counting your payments towards your debt to them.
When you try and modify you are changing the agreement and it costs them a big portion of their profit.
That's why there are only interested in helping you if you are in danger of foreclosure.
By David George