You are having trouble paying back your credit cards, your car loans, but most important to you is your mortgage. If you default on your mortgage all of your hard work is lost. You lose all of the money you invested in your home, and that can mean tens of thousands of dollars.

You are looking for solutions and firstly you looked at refinancing. Refinancing is a good option, but with the current credit crunch and economic troubles, lenders are not eager to give out new loans. Plus you credit score is not the best, and even if you do get approved for refinancing, you won't get the best terms.

So what else can you do? The simple answer is loan modification. Loan modification is a permanent agreement between your lender and you that with the main purpose of lowering your monthly mortgage. Your lender will give you several options such as a lower interest rate, extension of the term of the loan, grace period, elimination of accumulated fees, or a combination of available options.

Mortgage modification is great option with advantages over refinancing. Your credit score won't be checked because your lender has all of your information already. Plus you won't have to sign all of that paperwork again.

Loan modification is not guaranteed. That is why you need to do everything correctly to increase your chance of approval. You will need to send a hardship letter along with your application. You will need to learn the subject as best as you can so that you can show your lender you are serious and mean business.

One resource you should look into is 60 minute loan modification. 60 minute loan modification is an all in one kit that will teach you everything that you will need to know. It includes hardship letter outlines, important vocabulary and even recorded conversations between homeowners and loss mitigation representatives so that you can hear what to say and more importantly what not to say.