What is a mortgage rate modification ?
As of December 2008, rate loan modification is the quickest, fairest, and most mutually effective way for homeowners and banks to prevent foreclosure. Banks use loan modification to reduce interest rates, loan balance and/or extend the term. By reducing the monthly payment, homeowners keep their house and resume paying a reduced monthly payment and the bank avoids taking back a house they cannot afford. In 2009, we expect two to three million homeowners to use loan modification to save their homes. Banks will make loan modification the number one banking strategy to keep them solvent.
