Loan Modifications: What You Need to Know

Last year was difficult for Adline Peck and her husband. Peck, who lives in Inkster, Mich. was battling medical issues, and her husband had been laid off from work. Though they struggled to make their monthly mortgage payments, they continued to try their best, even if it meant sending in payments a week or two late. Eventually, Peck approached a friend in real estate who proposed a solution for their financial hardships: A home loan modification.

"The three of us got together, and we found the best package there is," Peck said of her loan modification. "It was not the headache I thought it was going to be."

The Pecks' loan modification enabled them to keep up with their payments and, more important, to keep their home. If you're seeking a loan modification, here's how to start: