Let's face it. Today's economy is affecting millions of Americans. Millions of Americans are having trouble keeping up with their home loan payments and a large percentage of those homeowners are facing foreclosures. In 2008 there were over 3 million foreclosure filings, according to RealtyTrac. Many homeowners are looking for ways to save their home. One way to do that is to get a loan modification. However, before contacting your lender to avoid foreclosure there should consider all possibilities.

First, exactly what is a loan modification? A loan modification is the process of changing the terms of a borrowers mortgage. Generally, loan modifications are done to help homeowners that are struggling to make monthly payments on their mortgage.

Why are lenders willing to change the terms of your mortgage to help you keep up with monthly payments? The lender will modify the loan because it makes more sense than bankruptcy to the bank. They'd rather keep you in your home while making less monthly payments than having to go through the foreclosure process and not receive any monthly payments. However you need to prove to the bank that you cannot afford your current payment but could afford a lower monthly payment if the loan is modified.

People that have tried to do this themselves have typically fallen considerably short where they could have been had they been represented by legal counsel. Keep in mind that anyone can file for a to have the terms of their loans changed. However, you may be better off with leverage using a reputable loan modification firm. Be on the lookout for companies that that charge high fees. In many states this is illegal. Only a licensed attorney can defend you and take on your file to represent you.