Note Negotiation and Loan Modification are two possible solutions for families that want to stay in their house, but cannot afford current mortgage payments because of adjustments in interest rates, or because of a recent hardship. This enables home owners to lower their monthly payments to an amount that they can afford, even if they are already behind on payments.

Loan modification is not a new loan; rather, it is a renegotiation or restructuring of an existing mortgage. In many cases, a loan modification may be the only option for a family trying to keep their house, whether because they are behind on their payments or because they have a low credit score. This is because they may be unable to receive approval for a mortgage refinance or a short-refinance.

A loan modification or note negotiation can take many forms, and usually incorporates some of the following:

• Lower interest rate on the loan
• Changing a loan from an adjustable rate to a fixed rate.
• The term of the loan may be lengthened
• A changing of the loan type

Loan restructuring or note negotiations are usually a solution that both the borrower and lender can agree on because it is beneficial to both parties. Don't wait for your home to be foreclose. Talk to a lawyer today about note negotiation or loan modification to stop foreclosure.