prevent foreclosureNobody wants to lose their home. But with today's economic situation, more and more hardworking individuals are losing their properties to foreclosure. You can't predict job loss, illness or injury. And even if you have an emergency savings account, this is not always enough to prevent foreclosure.

Some people try to prevent foreclosure by refinancing their home loan. This enables them to obtain a reduced interest rate and lower monthly payment. But what if you don't qualify for a refinance? What can you do?

Fortunately, there are additional options. Rather than sit back and lose your home, talk to your lender about a loan modification. Like a refinance, you can obtain a reduced rate, lower payment or extended loan term. The only difference is that a modification doesn't create a new home loan. Thus, you do not have to pay mortgage fees or settlement costs.

The lender reviews your financial circumstances, and then determines whether you qualify for a modification. If so, the lender negotiates a payment that fits comfortably within your budget, which can prevent foreclosure. It's a win-win situation.