subject: Home Loan Modification [print this page] Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. A good loan modification letter shows the lender why it would be in the lender's best interest to agree to a workout arrangement. In turn, the lender will reduce the loan interest rate, reduce monthly payment amounts or change other loan terms to allow for an affordable loan to allow the homeowners to avoid foreclosure.
