What Types of Loan Modification Programs are Available?
There are many different loan modification programs available. Depending on the type of loan that you have will depend on the loan modification that will be available. If your loan is of the type that you can apply for the Obama Plan, that would be the best loan modification option; the arrearage is put on the bank of the loan, your interest rate is reduced and you will pay 31% of your gross income for principal interest, taxes and insurance.
If the Obama Plan is not available because of the type of loan you have, there are many other options such as an internal modification that the bank can do. They can also do a repayment plan over a period of time. The last option so that you will definitely not lose your house is that you will pay the arrearage back over 5 years in a chapter 13 bankruptcy.