Dana Point, CA -- (SBWIRE) -- 07/21/2010 -- Home owners that are looking for options to lower their monthly mortgage payment will be pleased to know that there are two distinct ways to accomplish this task. You have the option to refinance your home and acquire a new mortgage or you can participate in a home loan modification program. Understanding the difference between the two will help you determine which option fits your needs.

When you refinance your current mortgage you will be required to meet all the qualifications necessary to obtain a loan, just like your original mortgage. You will need to have a good credit rating, be currently employed or have verifiable income and be current with your present mortgage. People that can meet these requirements will easily be able to refinance their mortgage at a lower rate.

If you cannot qualify under these conditions there is a program called home loan modification. This is a process where the lender will adjust your current mortgage interest rates based on your financial condition. People suffering from a temporary financial set back, are behind in their mortgage payments or are anticipating a large change in their income will qualify for this program. It is an effective way to avoid foreclosure.

A loan Modification attorney can assist a home owner with all the necessary paperwork associated with this program. It is imperative that paperwork is filled out properly and all the deadlines met in a timely manner or the mortgage holder could face being denied. Loan modifications are very specific types of transactions and all rules must be complied with for approval.

A loan modification attorney, trained in dealing with mortgage companies and the accompanying paperwork they require, will help the process run smoothly. When you are granted a modification you will have a lower monthly payment, and due to the lower interest rate, an overall lower debt burden.

Facing financial problems can be difficult. The thought of not being able to afford your home is unbearable. You do not have to loose everything you have worked so hard for because of a simple financial set back. Take advantage of a loan modification attorney and use their services to your advantage.