According to online real estate marketplace Zillow, there are approximately 13 million US homes with mortgages in a negative equity situation. In addition to negative equity, hardships and rising interest rates have left many homeowners unable to afford their monthly mortgage payments. For many families, the only hope they have of keeping their homes is to secure a loan modification that reduces their payments and makes their home affordable.
The US Department of Housing and Urban Development (HUD) has attempted to ease the foreclosure crisis with programs designed to encourage lenders to modify loans and provide homeowners with tools and resources to assist them in obtaining a loan modification.