There is a terrible crisis in the housing sector, which affects 30 million homeowners in the USA. More and more homeowners are losing their jobs, or having their salaries reduced.

Increasingly home owners are, through no fault of their own, falling behind with their credit card, mortgage or car payments. These people are in imminent danger of defaulting on their mortgage loan and having their home go into foreclosure. But there is a solution, and many home owners aren't even aware of this as an option: it's called loan modification - sometimes referred to as loan mod.

Mortgage loan modification doesn't involve refinancing, so there's no credit check needed. It isn't debt consolidation. It is renegotiating the current loan to achieve a reduction in interest rate and, under certain circumstances, a reduction in loan principal as well. And it does not involve increasing the term of the loan. A new, lower, payment is arrived at which is sustainable to the homeowner.

Loan modification is a true win-win for all parties concerned. For the homeowner it can mean the difference between keeping or losing their home. For the banks, it could mean the difference between remaining afloat or going under.

There is no reason why home owners cannot arrange their own loan modification by contacting their bank's loss mitigation department. But it seriously is not advisable - the banks will often only offer a slight lessening in interest rate, or no reduction at all. Far better to use the services of an established loan modification firm, which employs its own team of loan modification lawyers, who do nothing other than speak with banks all day long and have the knowledge and experience to accomplish a significant reduction.

Going it alone is like representing yourself in a court of law - it is seriously not recommended. A reputable mortgage loan modification firm can attain a 30% to 50% reduction in the monthly payment without an extension to the term of the loan. It's well worth the fee they may charge to achieve this.