Struggling to pay your home loan? You are in good company as millions of folks continue struggle financially. Credit Scores are at an all-time low. Foreclosure rates are at an all-time high. It is not pretty. And our best solution? Well, it’s still loan modification – however flawed and temporary – that hold the most promise for U.S. Homeowners.

Let’s review. Mortgage modifications, a reduction in monthly payment via an interest rate cut or an extension of term, has been the primary method the government and banks have used to slow the foreclosure rate. Many homeowners are pleased to remain in their homes, even though the home has declined in value well below the mortgage amount, as long as the monthly payment is “inline” with current values or local rental alternatives.

Many people believe that mortgage modification relief is really not available. And it truly seems that way, sometimes.

The HAMP loan modification program holds the most hope of any modification program. It’s simply head and shoulders above all other programs. The only problem? Qualifying isn’t always easy.

The first requirement is that the loan qualify. It must have been made prior to January, 2009 and  not be a “jumbo” loan (over $729K).

For more information contact a local real estate expert or real estate lawyer. Resources include Yorba Linda Homes for Sale and Rancho Santa Fe Homes For Sale.

Borrowers must show a hardship. That could be an increase in expenses, decrease in income – including reduced hours at work or job loss. Applicants do walk a tightrope however as the hardship must not be too, well, hard! Applicants must have enough document able income to make payments.

Homeowners who are completely without resources will not qualify. All loan mod programs require significant borrower income. The amount needed is figured using debt-to-income ratios and cash flows as submitted by the borrower(s) on a formal application.

All this is paid for by $75 billion from the U.S. taxpayer. Participating banks receive compensation when they grant loan mods.

The loan mod process can be brutal. Often mistakes are made and people who should qualify do not. Information on the process abounds from banks, governments and non-profits. But the difficulty remains enormous for the homeowner. The vast majority of homeowners need some type of professionals help to get a loan modification. But finding a trustworthy professional is not simple.

Article by Rancho Palos Verdes Homes for Sale. Also, a special thanks to Chicago Real Estate Listings for Market Statistic resources.