Loan modification is a real buzzword these days, with millions of homeowners looking into this viable option for slashing their current monthly house payments. But, not every mortgage is eligible for modification, and some people may actually be hurt by it.

To figure out whether a mortgage modification is right for you, begin by asking yourself these important questions:

Does my loan even qualify?

Unless your mortgage is still held by its original lender (and most aren't), the odds are you don't even qualify for a traditional modification. Until this year, any mortgage that had been sold to a new loan provider couldn't even request a modification of terms. Although this rule has been eased up a bit due to the current financial crisis, there is still no guarantee that you can even apply through a secondary lender.

The best way to see if your loan qualifies for modification is to ask your lender.

Am I behind in my mortgage payments?

Timing is crucial when negotiating a loan modification. Most lenders require you to be behind on your payments to qualify. Your best strategy is to ask for help as soon as you realize you can't make your current payments, but before any type of foreclosure proceedings begin.

What got me in this mess?

Your lender is going to want to know why you can't make your current mortgage payments and how you intend to make the new one. They would rather negotiate new loan terms with someone who unintentionally got into financial trouble due to an illness or lost job, versus someone who overspent.

Do I really want to keep my home - and my mortgage?

It isn't always easy to admit, but some people aren't ready to make the hard changes necessary in order to meet their mortgage obligations. If you are one of those people, than you may want to consider other options.

Am I sure I can make the new payments?

Mortgage lenders only give you one shot at loan modification, so be sure you can handle whatever new payment you agree to. If you fall behind again they'll likely foreclose.

Can my lender even lower my interest rate?

The most common loan modification tactic involves lowering the interest rate in order to lower the monthly payment. The problem is, if you already have a low interest rate, your lender may not be able to take it down any further.

Do I have any better options?

If you lender feels as if you have other options that are better than a modification, they may require you to take one of those instead. So, be sure that you understand your options clearly before asking for a loan modification.

If you answered yes to most of the questions, loan modification is a viable solution for your needs. You don't need to hire an expensive firm to do your loan modification, on the contrary doing it yourself leads to better results and thousands of dollars saved. One such kit is 60 Minute loan modification. 60 Minute Loan Modification is very simple to follow and has helped multiple people stay in their house and avoid foreclosure.

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