One person waited seven months trying herself. After contacting a debt settlement company, she got her mortgage payment cut by $400 a month and can now afford to keep her house.

Delinquent loans appear to be near a peak at certain lenders and they are looking to do something about it.

Modified loans have been rising and if the loans had not been modified, they would have been classified as nonperformers and thus hurting the bank’s bottom line.

Because most homeowners don’t know about loan mods (loan modifications), or have tried unsuccessfully on their own to obtain a loan mod, most of these properties will slip into bank foreclosure and add to the oversupply of an already over-saturated market.

This problem is not just limited to those who have lost their jobs. Some 588,000 homeowners defaulted on their home loans last year even though they were working and could afford to make their mortgage payments. In years past, Americans did not walk away from their homes, but that trend has reversed as more and more owners who thought they were getting a bargain are now realizing that they are underwater and owe more than the house is worth.

Some of the hardest hit areas are in California, Nevada, Florida and Arizona. Take Nevada for instance, almost 30% of homeowners owe 50%+ more on their home loans than their properties are worth, making them ideal candidates for loan mods. ]

One homeowner put down $106,000 on a $530,000 property back in 2004 that now has a value of less than $300,000. A rarity, he is too honest to walk away.

For most homeowners, this is where loan mods enter the picture. If they can obtain a loan modification, and sometimes a debt settlement, they can retain their homes if the loan is modified and their monthly payments are reduced. Many homeowners have adjustable mortgages and can get them changed to a lower fixed rate thru a loan mod.

Why not just refinance? Well, most are so far underwater, or have damaged credit, that they cannot refinance their mortgage and are therefore looking to debt settlement and loan modifications to get a new start on life. If the appraisal was irrelevant, they could make some headway, but that is what got us into this mess in the first place.

At the end of September, homeowners who were 30-days or more behind on their mortgage payment (or in foreclosure) totalled almost 7.5 million. As these are lost to foreclosure, the supply of homes for sale will dramatically increase keeping prices down. Locally, here in Illinois, the house next to me was for sale in June of 2008 for $234,000 and is now going to auction shortly for $125,000.

A loan mod might have helped my neighbors save their home that they put so much work into. Now it sits vacant.

Larry G. Potter has been investing in real estate since 1984 and is currently working with Glenn Baker (817-426-1484) to help homeowners facing foreclosure to obtain loan mods (loan modifications) and thru their debt settlement program, to reduce consumer debt that thousands of people are drowning under.

http://www.TOTALMILLIONAIRE.NET

Article Source: http://EzineArticles.com/?expert=Larry_G._Potter

This has caused a dramatic rise in home loan mods (loan modifications) as people scramble to save their homes.

Balance: $241,455.57
Rate: 9.25%
Payment: $2,176.40
Term: 297 months remaining

After Modification
Balance: $241,455.57
Rate: 5.9%
Payment: $1,541.60
Term: 297 months remaining

Contact Us Now and Save Your Home

Jack Barker jbarker6@bak.rr.com
Larry Potter lgpotter33@gmail.com

Your lender may not be telling you everything you need to hear.

Your mortgage companies work for their OWN benefit! It’s time we fought back for our rights!