Loan Modification

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Home Mortgage Loan Modification

Retain Your Possession with Home Mortgage Loan Modification. House is the most prized possession of any individual. Even then, many a times, such circumstances appear that you end up mortgaging it. However, time is never constant for anyone, and with changed situation your financial conditions also change. Such as the recession, it changed the entire economic picture of the country. Overnight the banks and the other financial institutions had washout, and therefore they began pressurizing the people who have taken loan to repay them. Therefore, with lost jobs and poor economic conditions, people have been put into a tight spot for repaying loans. In such a situation, the mortgage loan modification program has been of great help.

What is a Mortgage Loan Modification?

The mortgage loan modification is a program that helps people in financial distress with their repayment of loan. The principal amount to be repaid does not change; however, the interest that is paid on the loan amount is relaxed after proper negotiation and convincing of the moneylender. The tenure during which the money needs to be repaid is also relaxed largely. With this home mortgage loan modification, people can release both their possession and even repay their loan in a relaxed manner.

Modification of Mortgage

The organizations that provide mortgage loan modification program have experts who work for them. The loan modification service is provided only to the people who are in actual need of it. The experts of these programs accompany the concerned individual to the moneylender, convince them of the pros and cons of the mortgage loan modification, and get the process of loan repayment very relaxed.

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Home Loan Modification California

Are you a victim of the recession? Do you have a huge loan that needs to be repaid? Did you mortgage any property and now are finding it difficult to release it? Well then, worry no more California loan modification is here to help you. The loan modification scheme is very helpful; it relaxes the structure of loan repayment, by which the concerned individual only needs to pay the principal amount of the loan and they are relaxed of the interest amount, and the tenure within which the loan needs to be repaid is increased.

California Loan Modification

There are many loan modification companies in California, and some of them have been doing a great job in getting loans modified, and have experts working for them. Even though there are many such companies offering the services, you must be very sure before you get associated with any company. Try to fetch as much information possible about them since there is a high amount that is at stake.

With the change in time, the concept of California Loan Modification has changed where nowadays borrower not only opt for it for any job loss or medial help, they are taking it to change the adjustable rate mortgage into fixed rate loan. You need an expert team who would guide you to choose the best option immediately. You need a team of experts that understand your situation and can provide you with California Home Loan Modification Services to give back your sweet home to you. If decide that the home loan modification is the right option for you than you’ll need the following documents to get the process started:

Hardship letter

Mortgage statement

Bank statements

W2 forms

Tax returns

Income financial statement

California Loan Modification Process

Loan modification process involves the change in the terms of the loan that is only possible with the consent of both the lender and homeowner. It’s the responsibility of the lender to do some necessary changes in the present loan policy to ensure that the homeowner doesn’t struggle with the monthly payments. It is understandable that you do not want to lose your home and so you need loan modification services to make your loan payments easy. Rate reduction, fix rate for a particular period, minimizing the principal balance, these are some of the forms of loan modifications that may be available to you.

Home Loan Modification California

Out of all the companies offering loan modification services in California there are organizations out there that offer the best possible services as they have some of the best experts working for them, who will personally accompany you to visit the concerned moneylender and carry out all the negotiations on your behalf, so that you get certain relaxation in the repayment of the loans.

It is always better to have an expert accompany you to carry out the negotiation because it is not an easy task to convince the moneylenders, and the experts will be able to do it better than you will. They will be rightly able to explain to the moneylenders of the pros and cons of the loan modification in a far better way then you will be able to. Therefore, for loan modification programs in California people will no longer have to worry, as they can have the qualified assistance of some of The Best California Loan Modification Companies.

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Loan Modification Questions and Answers

It is important to get educated about your rights and the amount of time you have remaining. You then must understand your options and decide how you are going to prevent the foreclosure. Once you have done that it is important to take immediate action. The sooner you take action the better chance you have of avoiding the foreclosure.

If you are having problems making your monthly payment on your mortgage, then your house may be placed into Foreclosure. A Foreclosure is the legal way the bank can use to repossess your home. The foreclosure process can be a very stressful and confusing time for most homeowners. Unfortunately many predators are aware of this and use this duress to take advantage of uneducated homeowners. We at HouseHoldRelief.org do not believe a lack of education is any reason why anyone should lose their home. Below are 8 steps to assist you make sound decisions and avoid foreclosure.

How long does a Loan Modification take?

The process typically takes anywhere from 60-180 days. There is no exact length of time that can be given because there are a lot of different variables that can effect the process. The only way to ensure that the Loan Modification Process goes as quickly is possible is to prepare a legible, well organized and complete package to the Lender.

How many times can I apply for a Loan Modification?

There is no limit to the number of times that you can apply for a Loan Modification. As circumstances change, you may be eligible for a Loan Modification in the future, even if you were already declined.

What is HAMP?

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures. For more information please visit www.makinghomeaffordable.gov.

Can I apply for a Loan Modification if I am in foreclosure?

Yes you are still able to apply and receive a Loan modification even if you are in the foreclosure process. In fact the banks are even more motivated to workout some type of solution because they do want to foreclose on your home. Because the situation is a little more distressed, make sure to get through to a negotiator and request a postponement or a stay on the foreclosure sale until the Loan Modification application has been reviewed. They will not do this automatically just because you send in an application, so be sure to speak to someone and confirm the information.

How do I determine the equity in my home?

The market value of real property minus the total amount of all the mortgages and existing liens. Liens include but are not limited to; Property Taxes, Personal Liens, Tax Liens, etc.

What is a Hardship Letter?

A letter written by the owner of the house to the bank detailing the financial hardship and details leading to the hardship. It is required when requesting a short pay or Loan Modification from the bank.

What is the Loss Mitigation Department?

A department of the mortgage bank that is responsible for recovering funds from a delinquent or defaulted account. They are in charge of mitigating the loss that may result from the defaulted loan.

What is a Notice of Default?

A document that is recorded and delivered to the borrower when default has occurred under a deed of trust. This initiates the foreclosure process, and the information is now public knowledge.

What if my bank says they do not do Loan Modifications?

This is just not true. Many homeowners are running into this problem. Many of the homeowners that call into their bank are talking to customer service representatives that have no authority or connection to the decision makers in the bank. The Loss Mitigation Departments of almost all banks are responsible for approving Loan modifications. In fact many banks are being encouraged to adopt the HAMP program that was enacted by the Department of Treasury in March of 2009.

The goal of the OBAMA LOAN MODIFICATION is to help 7-9 million borrowers stay in their homes. The Federal government will offer incentives to lenders who participate, but the final determination is up to each bank. Homeowners will be asked to gather certain required documents and complete loan modification forms that will be reviewed for eligibility.

Here are some general guidelines for basic eligibility for this program:

You must live in the home as your primary residence

Includes second mortgages

You must be able to prove your income

Your current house payment must equal 31% or more of your gross monthly income

You do not have to be delinquent to apply for this loan modification program

No charge to apply-Free loan modification program

Your loan must have been taken out prior to January 1, 2009

Loan amount is less than $729,750

Facing a financial hardship situation

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Short Sale - What is a Short Sale?

To sell your home in a short sale or offer a deed in lieu may be a solution and may allow you to walk away without a deficiency. In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.

The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

What is a Short Sale?

A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Additionally, a short sale is typically faster and less expensive than a foreclosure.

What Does Short Sale Mean?

In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. Lenders have a department (typically called a loss mitigation department) which processes potential short sale transactions. Typically, lenders do not accept short sale offers or requests for short sales until a Notice of Default has been issued or recorded with the locality where the property is located. A lender would typically rather have you short sale thee property rather than having you file bankruptcy. Unfortunately due to different types of mortgage loans many homeowners are unable to refinance out of toxic mortgages, forcing them to find other alternatives. It is important to consult an attorney that is familiar with debt forgiveness and the tax implications that may be involved. Typically bankruptcy or a loan modification is a better alternative unless your lender is willing to forgive the debt without giving you a 1099 for the forgiven balance.

Short Sale Process

Lenders have a varying tolerance for short sales and mitigated losses. The majority of lenders have pre-determined criteria for such transactions. Other distressed lenders may allow any reasonable offer subject to a loss mitigation's approval "Red tape" is very common in short sales, similar to REO and HUD properties, requiring potentially multiple levels of approvals and conditions. Junior liens, such as second mortgages, HELOC lenders, and HOA (special assessment liens), may need to approve of the short sale. Frequent objectors to short sales include tax lien holders (income, estate or corporate franchise tax - as opposed to real property taxes, which have priority even unrecorded) and mechanic's lien holders. It is possible for junior lien holders to prevent the short sale. While it is frequent if not common for a lender to forgive the balance of the loan in question, it is unlikely that a lien holder that is not a mortgagee will forgive any of their balance. Further, it is common for a lender to omit updating the zero balance and settlement option on the mortgagor's credit report, or even flat refuse to do so "due to their financial loss". If you would like more information about loan modifications, bankruptcy chapter 7, chapter 13 and short sales please visit our Loan Modification Blog.

The Mortgage Forgiveness Debt Relief Act of 2007

When the lender decides to forgive all or a portion of a borrower's debt and accept less, the forgiven amount is considered as income for the borrower and is liable to be taxed.

However, after the signing of The Mortgage Forgiveness Debt Relief Act of 2007 by President Bush, amendments have been made to remove such tax liability and allow the borrower and lender to work freely together to find a common solution that is beneficial to both parties. This protection is limited to primary residences so consultation with a tax adviser is necessary ensure that a borrower qualifies. A short sale does not adversely affect a person's credit report beyond documenting the short sale as "foreclosure proceedings started". But it does count against a person's credit to about the same degree as a foreclosure by similarly remaining on the report for 7 years and, most often, prevents the issuance of any mortgages for the same period of time.

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Loan Modification Attorney

The goal of a Loan Modification Attorney is to assist the needs of their clients so that they may retain the profit from their largest financial investment, their home.

The Attorney Loan Modification offers services to both the borrower and the lender which demands attention from both sides. Loan Modification Lawyers can oftentimes revive the feeble affiliation the two parties have developed and can help re-open the lines of communication. With the help of a Loan Modification Attorney, the disgruntled borrower’s receives the respect they deserve and may be able to obtain new terms that allow the borrower a stable and secure mortgage repayment. Meanwhile, the lender is pleased since a once vulnerable account in now brought back to good standing.

The Loan Modification helps homeowner’s who are having difficulty with their mortgage get new terms from their lender that fit your monthly budget. The best thing about a Loan Modification Attorney is that you will be working with a qualified legal representative that is well educated in mortgages and real estate law whose number one goal is to help people out of tough situations.

Loan Modification Lawyers

The goal of a Loan Modification Lawyer is to put homeowners in a more flourishing financial situation than they are currently experiencing. They are able to achieve this in many different forms; Interest rate reduction, balance reduction, deferred interest settlement, and foreclosure avoidance. The Home Loan Modification Lawyer will apply the approach that best fits your personal circumstances and acquire the right information that creates leverage for your case. All of this is done in your best interest and your individual goals are kept in mind.

There are many myths circulating around Home Loan Modifications. However, the fact remains the same; a Home Loan Modification is a great solution to re-establish financial security in ones life. Home Loan Modifications have been successfully achieved whit the assistance of Qualified Loan Modification Lawyers in many cases in which the borrower thought they had little or no options to take control of the present and prepare for the future. Attorney Loan Modifications have triumphed in circumstances where the borrower is struggling to make the current payments, therefore paying bills with credit cards and increasing their debt. Also, through an f we have achieved a modification when the terms of the loan are about to adjust upwards or have been, thus escalating the monthly payments as well as the anguish of the situation. There has even been success in cases where the borrower was unable to make payments for months and has been presented with a foreclosure date, all thanks to the Loan Modification Program.

A Qualified Loan Modification Attorneyis trained to expedite this process and keep the lender neutralized, protecting you from incurring any additional expenses. Since the banks were not created to support a loan modification process, the customers will need Loan Modification Attorneys to operate with the customer’s best interest in mind. Through the Loan Modification Process an Attorney can oftentimes be able to omit the monetary selfishness of the lender that created the housing catastrophe originally. The purpose of the Loan Modification Program is to modify your loan into terms that benefit you this month, next month, this year, next year, and for the entire life of the loan.

With the attention focused on the homeowner, Qualified Loan Modification Attorneys  have been able to build trust and confidence with every client. The key to the success of the Loan Modification Program is built on courtesy, competence, and communication. They also apply these business principles to their relationship with the lenders and loan service companies. This has created numerous contacts with the lenders that have given these legal professionals the ability to demand respect in their eyes and accomplish a loan modification. Meanwhile, this creates a life long relationship between the Attorney Loan Modification and the current customers since they see the determination of their legal representative to better their situation. The lenders know that Loan Modification Attorney’s   presence is in support of the client’s best interests.

If the ultimate goal of the borrower is to stay in their current property, an Attorney Loan Modification will be necessary to create new terms and institute fiscal conformability. For a successful Attorney Loan Modification it is vital to submit a comprehensive review of your personal finances. It is imperative that we demonstrate a hardship and your willingness and ability to make the new mortgage payment when the terms could be negotiated.

No matter how dire the situation appears, The Attorney Loan Modification work to discover all options and opportunities that can change the dismal present and set the stage for a superior tomorrow! There are countless success stories so stay positive and don’t be discouraged.

Here are some of the ways an Attorney Loan Modification can benefit YOU!!!

Balance Reduction/Deferment: With the decrease in home values throughout America, it is not uncommon that a home is upside down. In these cases, the Attorney Loan Modification will strive for both, balance reduction and interest rate reduction/deferment. The Attorney Loan Modification finds great success with a balance reduction when the property has a second mortgage but we can not be confined to these isolated circumstances. It is common that clients receive an interest rate reduction in conjunction with a balance reduction. Therefore establishing financial stability for today and creating a long term gain for the life of the loan.

Foreclosure Prevention: Using a variety of approaches, the Loan Modification Programs have helped many borrowers who are facing foreclosure and believe there is no hope in the future. There has been success in relinquishing past payments, fees, and penalties. All these monetary bills are deferred in order to help you grasp the once present sense of financial security. Through the Attorney Loan Modification you may be able to clear delinquent fees all together, and become current on the past due payments.

Interest Rate Reduction: The most common type of modification. This method lowers the note rate making the mortgage payment much more affordable. Typically adjustments using this method will see 30% reduction of their rate in overall rate. This drops the payment drastically allowing for new found comfort with your personal housing expenses.

These approaches taken by the Loan Modification Attorneys have proven to better the lives of the customers and they are thankful for taken the initiative to improve their tomorrow. With the guidance and knowledge of a good Loan Modification Attorney, re-establishing financial security is oftentimes inevitable.

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Obama Loan Modification

The Obama administration has launched the Obama Loan Modification program with an intention to assist 4-5 million indebted homeowners in the USA. It is already being proved that foreclosure is neither benefiting the lender nor the borrower. The lenders can take part in the Obama Loan Modifications program as service providers or facilitators but they are not compelled to do so. The lenders taking part in this program have to comply with the guideline set by the Treasure Department. There are provisions for incentives for both service providers and the borrowers of this program.

So just who will qualify for the OBAMA LOAN MODIFICATION program? The Affordability and Stability Plan will allocate $75 billion dollars to help borrowers stay in their homes - Who will qualify for help and which lenders are participating? Here is some helpful information if you are interested in applying for this federal plan.

The goal of the OBAMA LOAN MODIFICATION is to help 7-9 million borrowers stay in their homes. The Federal government will offer incentives to lenders who participate, but the final determination is up to each bank. Homeowners will be asked to gather certain required documents and complete loan modification forms that will be reviewed for eligibility.

Obama Loan Modification Program

How do you apply for the OBAMA LOAN MODIFICATION and what is the approval process?

Here are some general guidelines for basic eligibility for this program:

You must live in the home as your primary residence

Includes second mortgages

You must be able to prove your income

Your current house payment must equal 31% or more of your gross monthly income

You do not have to be delinquent to apply for this loan modification program

No charge to apply-Free loan modification program

Your loan must have been taken out prior to January 1, 2009

Loan amount is less than $729,750

Facing a financial hardship situation

The good news is that successful borrowers will also be given a financial incentive for staying on the OBAMA LOAN MODIFICATION and keeping their new modified loan current. The incentive will grow for each month that the payments are made on time, with a possible $1000 bonus that will be applied directly to their mortgage balance for each year the payments are current, for a total of 5 years. Now is the time for financially strapped borrowers to begin learning more about how to qualify for this loan modification program and submit their paperwork for approval. Help is available for borrowers who know how to get it-make sure you do everything you can to save your home. You deserve a lot of credit if you made a decision to fight back.

Obama Loan Modification Program Details

Part 1: One part of the Obama Loan Modification Plan has been designed to help the homeowners whose homes have depreciated and because of this they have not been able to avail the refinance. In fact the current loan value is more than the real time value of the house. This plan is for those people who have availed the earlier loan from Freddie Mac or Fannie Mae.

Part 2: The other part of the Obama Loan Modificatoin Plan is tailored to lower the monthly payments for debtors on the brink of foreclosure. This modifies the mortgage and lowers the monthly payments. Unlike the first part, this part does not require Freddie Mac or Fannie Mae to be the first lenders.

The defaulters of mortgage loan have finally found solace in the Obama Loan Modification Plan. The benefits of the Obama Loan Modification Plan are too good to be ignored. You come across options like this once in a lifetime. The rate of interest as a consequence of the Obama Loan Modification program can be lowered to as low as 2%. The Obama Loan Modification is going to pay incentives to people who are going to facilitate this mortgage loan modification system as well as the people who avail this program and are current at the monthly payments.

Having a home mortgage that you can afford to pay in today’s economy is not an easy task. The monthly payments that were once affordable are becoming a financial burden for many homeowners. For those homeowners who now find themselves unable to afford the monthly payments can find relief in the Obama Loan Modification Program which is designed to reduce monthly payments until they fit into your budget.

Which banks are participating in the OBAMA LOAN MODIFICATION? The program is on a voluntary basis, however the Federal government is offering monetary incentives to lenders and servicers who participate in the OBAMA LOAN MODIFICATION, so most banks are offering this plan to their borrowers who qualify. Before you call your bank you need to learn about the programs guidelines and prepare your financial statements ahead of time.

The Obama Loan Modification program comes when it’s most needed. The purpose of the home loan modification program is to reduce the monthly payment of your mortgage, lower the rate of interest and make the monthly payment affordable in such a way that it does not exceed 31% of the gross income of the debtor.

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What Is A Loan Modification?

Behind on Payments? Loss of Income or Job? Facing Foreclosure? Don't Know What to Do? A Loan Modification may just be the answer that you are looking for. It is a win-win scenario for both you and the bank. A loan modification is a process whereby the original terms of a mortgage are changed in order for you to better meet your mortgage obligations. Most people had to work extremely hard and invest a lot of money in purchasing their home. It is a complete waste if they are forced to sell, or are forced into foreclosure because unforeseen hardships cause them to fall behind.

If you are having problems making your monthly payment on your mortgage, then your house may be placed into Foreclosure. A Foreclosure is the legal way the bank can use to repossess your home. The foreclosure process can be a very stressful and confusing time for most homeowners. Unfortunately many predatory lenders are aware of this and use this duress to take advantage of uneducated homeowners. We do not believe that a lack of information is a reason why anyone should lose their home. You should learn about the basics of the Loan Modifications, how the process works and what to expect from your lender. You need to get a better understanding of mortgages and the situation that you may be facing.

Depending on your specific situation, the terms of your current mortgage loan, and the results of your Mortgage Compliance Report you may need the services of a Loan Modification Attorney to review your loan modification package and or assist with the negotiations while dealing with your current mortgage lender. If you and your family are facing the unfortunate circumstance of foreclosure don't waster anymore time hoping for a miracle and get some assistance immediately.

As a homeowner you may gain an advantage by having an appraisal done by one of the companies endorsed by Fannie-Mae and Freddie Mac to demonstrate to the lender the value of the home if the lender were to foreclose and repossess the home. The value of this appraisal generated by Fannie-Mae and Freddie Mac endorsed property appraisal company is to show the lender the financial disadvantage they would have if the clients home were to go through the foreclosure process.

What Is A Home Loan Modification?

You may qualify for assistance if you:

Lost your Job or Income due to Economy

Have Received a Notice for the Sale of your Home

Decrease in Home Value

Facing Foreclosure

Divorce

Death in the Family

Unfair, Adjustable, or Negative Loan

Adjusting Payments

Adjusting Interest Rates

Extreme Hardship

If you fall in one of these categories you may be able to qualify and:

Avoid Foreclosure

Lower payments

Lower interest rates

Get a Principal Reduction

Borrowers must be able to prove that they are facing financial hardship, detail their income and expenses clearly and provide all of the necessary paperwork to be considered as a candidate.

By taking an active role in your home’s future and fighting back, your chances of saving your home have just gone up dramatically. Not fighting back has already caused millions of homeowners to lose their homes.

Being able to modify the terms of your existing mortgage can help you keep your piece of the American Dream. Obtaining a successful Loan Modification can drastically change families lives and financial futures.

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Freddie Mac Loan Modification

The Home Affordable Modification program, popularly known as HAMP is surely a bold step ensured by the U.S department of the Treasury. The new loan modification programs now make the home loans even easier for you. Even if you have been finding difficulty in recompensing your arrears, now you can soothe your nerves. With this announcement, several loan modification companies have come to extend services to the clients. Among these several services, Freddie Mac loan modification program brings for you the best opportunities for resettling your loan conditions.

Freddie Mac understand how it difficult at times it becomes for you to repay the mortgage arrears for its high price. Freddie Mac loan modification programs are just meant for you. You need to work with a team of loan management professionals that can provide you with a number of alternatives for you. With help of Freddie Mac, your mortgage arrears would no longer be nightmare for you.

Need advice for a fresh mortgage loan? Freddie Mac loan modification program is again the right type of service you can always trust. We can suggest you some of the best options for you with which you could save a lot of bucks on your arrears. Starting from explaining the eligibility criteria to putting home loan options for you, we at Freddie Mac can guide you on all home loan related inquiries.

You have several options for readjusting your repayment patterns. The Freddie Mac loan modification programs come up with a number of workable choices for you like refinance, reinstatement, forbearance, and other types of loan modification if possible. 

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Fannie Mae Loan Modification Program

Are you looking for an effective mortgage relief program for saving your property? If yes, Fannie Mae loan modification programs can help you extensively. If you are not comfortable paying the mortgage payments to your lender, Fannie Mae could come up with several options for you. Sometimes mortgagees cannot enjoy the lower interest rates prevailing in the market due to the dropping of value of the home. Fannie Mae loan modification programs are just befitting for you to find the current lower interest rates for your convenience. Fannie Mae can help clients negotiating with the lenders in such a manner so that they get alternative repayment plans. The Fannie Mae loan modification programs could be best for you when you are at threshold of a foreclosure. The intelligent assessment on the status of your mortgage loan can help your bank in reconsidering their decisions. Fannie Mae consultants are however not magicians to help you miraculously when you are almost at stake of losing your property; it is their experience and expertise to pave out a way that is congenial for you. Please make sure that Fannie Mae consultants that you are working with are highly dedicated and they try forward prioritizing your requirement before anything else. With help of the Fannie Mae loan modification programs, you could certainly prevent an impending foreclosure. You need to look for loan evaluation opportunities help you coming at an agreement with your lender. You have several options left with which you could save your valued property. You need to work with counselors that always take pleasure in explaining you your choices and options.