Loan Modification Companies Loan modifications are a way distressed homeowners to get a lower interest rate without going through a complete refinance. Loan modifications are nothing new at all.  The main difference is circumstantial.  The failing economy and the falling home prices have forced banks to be more creative and willing to work with hardship cases.  Normally they would charge a fee and it was rare that the lender would actually rework the contract to benefit the borrower.  Mortgage loan modifications have become much more common these days as banks become more creative and flexible as they attempt to avoid foreclosure so they can keep their costs (process of foreclosing) down since the homes won’t auction off for the amount of the loan in many cases anyway. If you are considering a loan modification, you may want to contact a loan modification law firm in your area.  Knowing how a loan modification works and actually getting one done can be confusing and complicated, and a good law firm can save you huge amounts of money in the long run.  They know which banks are willing to do what type of deals.  Don’t leave money on the table.