In a previous segment, I touched on several options for mortgage holders who are underwater. Then I ran across some particularly timely information courtesy of Anna Kerr of Refinanceitt.com, an online refinance loan company in Schaumburg, SC.

Kerr says if you are lacking behind in the mortgage and are not able to qualify for loan modification or some other kind of payment, you should opt for mortgage modification.

Home loan modification permits the consumer to interact with the lender and avail the desired loan terms and conditions. According to Kerr, you can state your preferences, which will enable you to pay the loan with ease and comfort.

She says chances are the lender will either decrease the mortgage modification rate, which will in turn decrease your payment per month, or give an extension in the loan term and be assured that the dues are included in the main balance of the loan.

Kerr says you begin by calling up the lender or the present mortgage service provider who has been given rights by your lender. Before contacting your lender, however, keep in mind three important things.

-First is to prove your affordability. Show the lender that you are really facing a financial hardship and hence cannot pay the amount of loan without loan modification advice.

-Second is your home equity. Your equity should be enough to pay off your mortgage dues and costs of foreclosure. Some lenders may increase your home value when the prices on homes are down, so be aware of all existing home trends and property values to be prepared for inflated appraisals.

-Last but not least is your modification costs. The lender tends to decrease the cost while modifying your loan. Hence, your process of mortgage modification should not be done without loan modification help from professionals.

Beware of all terms and conditions of modification to avoid any future troubles. Kerr says you need to be very active and smart and negotiate with the lenders to get maximum possible benefits.