No wonder, with number of new announcements through various lenders and the Feds regarding various government supported and independent loan modification programs, borrowers can search themselves scratching their heads even wondering from where to start.

1. The Home Affordable Modification Program is financed for $75 billion and provided usual loan workout terms to eligible homeowners. Contributing lenders are entitled for incentive payments by the Treasury Department for each loan workout concluded by the government guidelines. Targeted to assist around 5 million borrowers protecting their home, this program would expire in 2012. The objective is to provide new loan terms which result in a mortgage expense which equals only 31% of the borrower’s gross monthly earnings.

2. FHA Partial Claim home loan modification is obtainable for homeowners whose loan is assured through the FHA. With this program, a delayed still loan is utilized to cover the amount overdue and get the loans existing. There won’t be any payment or interest outstanding on this loan waiting till home is sold or the loan refinanced.

3. Major lenders offer a home loan modification program which provides various alternatives to get qualified borrowers with lower monthly payment with reasonable amount. This can be accomplished through a decreasing the interest rate, and lengthen loan term, principal moderation or a mixture of all of these alternatives.