If you are considering a loan modification, one of the questions that will probably be on your mind is how it could benefit your situation. Although this may not be the best path for everyone, it could help you get your finances back under control. First, it could benefit you by allowing you to avoid foreclosure, a short sale, or a deed in lieu. You could keep your home and avoid your family having to go through the trauma of having to be thrown out of your home. Second, your monthly interest rate could be significantly lowered. Especially in cases of adjustable rate mortgages, you could negotiate a lower rate that is fixed and better suits your budget.
Another benefit of a loan modification is that it can modify the terms of your mortgage so that you are paying less every month. This could be very advantageous as it will remove the possibility of being unable to pay your mortgage as well as other monthly bills. Another option is to extend the amount of time in which your mortgage must be repaid. There have even been cases when the lender will lower the overall principal that you owe on the property.