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The step by step process will be explained for you here, this may help you complete a modification if you have the time to spend on actually getting it done yourself.

A successful modification can be completed for you by a professional within roughly 90 days as the experience and the man power on doing and completing this process the right way is already known and practiced daily.

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- Get the loan modification forms that will be required by your lender. Financial statement, hardship affidavit, hardship explanation letter

- income documentation-paycheck stubs, W2's, tax returns, award letters, bank statements

- Get out your monthly bills-itemize your expenses and you should be as accurate as possible

- Now complete your financial statement by itemizing your household gross income and your monthly expenses.

- Fine tune your financial statement with any changes required so that you know your budget fits into the approval guidelines based on your banks requirements.

- Put together all of the forms, income and asset documentation, hardship letter and organize them into a folder for handy reference (this part is critical because if you do not make it "easy for the bank" they will put your file to the side and not even contact you).

- Now, call your lender and tell them you want to apply for a loan modification or a loan restructure, have all of your prepared financial information and documents ready so you are prepared to give them your accurate and acceptable information in the proper order as they require you to do so.

Obama's government has come up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed specifically for all the borrowers who are facing financial hardships as they are not in a condition to repay the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages and the government would spend billion for helping the homeowners.

Obama's Stimulus Package has 2 main components:

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1. Refinance

2. Loan Modification

Let us discuss each one of these components in detail:

1. Home Refinance Stimulus Package

· In this program the two most powerful mortgage lending agencies of the government Fannie Mae and Freddie Mac would refinance the home loans of all the owners who owe much more amount to the bank than the actual value of the house. The only condition for this package is that the mortgage must be a guaranteed one by Fannie Mae and Freddie Mac, and then even if you are strong enough to pay the entire extra amount, you can gain advantage of the program.

· But there is one major condition joined with refinance stimulus package and that is; the offer is only valid for the properties which are used for residential purpose. Any property which is lying like a building and no one is living inside, will not qualify for Obama's home refinance stimulus package.

2. Loan Modification Stimulus Package

· There have been special incentives that Obama's government is going to provide to all the lenders for doing loan modification on the existing home loans of the borrowers. According to this program, the homeowners can get rid of foreclosure by getting it done. The main features of this program would be; interest rate would be reduced and it can go down to 2% only, tenure of the loan would be increased to reduce monthly payment amount and borrowers will get waiver of late fees.

· With loan modification, lender will also take care of the total monthly payments that a borrower is making and it would not increase than 31% of the total monthly gross income.

It can be scary when your home is on the line and you need to ask your bank for help. A loan modification could provide you with a lower payment and help you to keep your home. So, if you know some of the important approval guidelines then you will be better equipped to provide your bank with the information they need from you in order to approve your application.

Just as importantly, you need to know what causes a loan modification to be turned down and why some homeowners are approved while others-while also deserving-are denied. It's not magic or rocket science, but there is an actual formula that bank use when determining which homeowners qualify for one of the federal loan workout plans. Especially the stimulus plan called HAMP-this program offers standard guidelines for approval-so it just makes sense to learn those guidelines and be prepared to fine tune your application accordingly.

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What will cause a loan modification application to be turned down? Here are a few pitfalls to avoid:

Do not overstate or understate your income. Everything you put on your financial statement must be proven. So, if you have income that is paid in cash, make sure you deposit that into your bank account so that you have a paper trail to prove it. Accurately account for your monthly bills-the bank will check your debts by pulling a credit report so be sure you include everything that will show up. Only show the minimum payments due on your credit cards-even if you sometimes make a bigger payment. Work on your financial statement before you call your bank-you need to have the chance to fine tune your numbers and be certain that your application demonstrates your ability to afford the new modified payment. You want to get it right the first time-so taking the time to prepare your application ahead of time can be the difference between approval and denial!

A loan modification can be turned down for many reasons, and some of those reasons are out of your control. Remember, your bank will always choose the option that will save them the most money. So, if they can lose less money by foreclosing instead of modifying your loan, that is what they will do.

Homeowners can increase their chances of a successful loan modification by doing their best to prepare an accurate, acceptable and complete application. This means that your debt ratio, new target payment, disposable income and the other qualifying triggers have been calculated ahead of time to prove in black and white that you meet the guidelines. This calculation may be confusing if you have not done it before, so you may want to use a software program designed just to help homeowners.

You can avoid the pitfalls of loan modification denial by using the Loan Mod Quick App software to make certain that your figures are accurate. Also, you will see immediately if you need to make any adjustments to your budget in order to qualify-before your bank has the chance to turn it down. If you know the guidelines, use those same guidelines and prepare your loan modification application correctly, you have a good chance of success.

Is home loan modification a good idea? If you are having financial problems and have fallen behind on your mortgage payments then this might be an option for you. There are some things that you need to be aware of concerning the pros and cons of loan modification. If your financial problems are such that you can't even afford to pay anything then this plan won't work for you.

Loan modification involves renegotiating the conditions of your mortgage payments to be able to fit the budget that you are currently using. You can negotiate for a reduction in the amount of interest that you are paying. If the after reducing the interest the mortgage payment is still too high for you then you could negotiate for a lowering on the amount you are owing on the principal debt. If the lender cannot agree to this; you can request an extension in the payment period.

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Either way you get to keep your home and avoid the risks associated with taking up a refinancing loan. A second loan will more than likely have interests that are high and even higher monthly payments. Is a home loan modification a good idea? The answer is Yes; if you qualify and can get reliable help then it is a good idea.

There are sites that you can find on companies that deal with problems on mortgage payments and modifications. They will approach the lender on your behalf and review your payment conditions for you. This is better because you will have a tough time working out a deal with the lender when you are already defaulting on payments.

Most lenders control the receiving of payments and the execution of the loan payments and do not actually control the loan. If you are asking is home loan modification a good idea? Get expert help and don't try do it yourself, it will work for you.

If you're thinking of applying for a home modification loan, DON'T!

When this topic was first announced, billions of homeowners thought they would get relief from the heavy burdens of high mortgages. The intention behind the modifications was to save family homes across the country. They thought they're mortgages would be lowered and they would have a chance to keep their home.

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This is not how it turned out. While the intentions were for the homeowners, and the politician bickered and fought for the revisions they wanted, the mortgage companies schemed and the results you ask? Total chaos.

The process of applying for a home modification loan is fairly simply. The mortgage company sends you an information packet including a hardship form to fill out as to why you need to lower your payment. In the packet they request specific information regarding your finances. That's understandable; they need the information to make a determination. Based on the information, they give you a three-month trial modification mortgage amount that must be paid on time every month. The difference can be a few hundred dollars up to thousands, depending on your financial situation.

They continue to request the same information throughout the process; even if you have already sent it, you will be required to send it again. When you speak to them, they will request such minute information that you scramble to get it together. When you finally think that you have sent them all they will need, they need more.

What they don't tell you is that while you are on the modification program, the difference between the modification amount and your original amount accrues with interest. The mortgage company reports to the credit agencies that you are behind on your payments and your credit score goes down.

Even if your original loan did not have an escrow for taxes and insurance, a modification loan requires that you have one. A certain amount of the mortgage payment is set aside but the kicker is that they will not release it until the following year. That means that you are responsible for paying the taxes and insurance out of your own pocket, and if there is a balance owed to the mortgage company they apply whatever is in escrow to that balance.

The mortgage company will present hoops for you to jump through by way of requesting information, and if you miss even one, your loan will be denied. You have to be diligent in calling them at least once a week to find out what the status of your modification is, if you don't you will be denied and owe them huge sums of money. It WILL put you into foreclosure.

The Feb 18, 2010 edition of USA TODAY states that over a million people in the United States have applied for modification loans, and of the million people, only 12% have been converted into a permanent modification.

Economists estimate that within the next three years, over six million homes will be foreclosed upon. This is unacceptable.

Seventy Five billion dollars was set aside to save family homes in the United States and because of the bickering and fighting within the government, mortgage companies have instituted deceptive practices and nobody noticed. They pocketed the funds and families are being left homeless because the political parties wanted to 'one up' each other to get their own way like children fighting on a playground.

It is time to stop the bickering and fighting and take a very close look at what these mortgage companies are doing and find a way to solve the problem before six million people are living on the streets of America.