Step 1: Is a home loan modification right for you?

When is a Loan Modification the Right Solution?
What Payment Should I Settle For?
Can I Keep My Home Long Term?

When is a loan modification the right solution?
When the resulting payment is reduced to 31% of your gross monthly income and you are able to regain financial stability in your life. Accepting a loan modification that puts you on a treadmill back to foreclosure is worse than having no modification at all.

Your gross monthly income is the amount you make before taxes.
The maximum payment is your target monthly payment including taxes and insurance
Current payment is what your current scheduled mortgage payment is.
Required reduction is the amount the lender will have to reduce your payment to reach your target (the average loan modification reduces monthly payment by $558).

Now that you know how much you should be paying per month lets take a look at your longer term recovery. By getting a loan modification you may avoid the immediate need to stop a foreclosure and gain some breathing room. Looking over the horizon at your long term financial outlook are you going to be better off? Use this calculator to compare the costs and benefits of loan modification side by side with Short Sales and Deed In Lieu/Foreclosure. Ultimately we want you to make the best decision for your long term, personal benefit.