government loan modification program, government loan modification guidelinesThe government loan modification program was designed to help people keep their homes and to stop the excessive number of foreclosed homes on the market. The government loan modification guidelines work with people whose homes are worth less than the mortgage amount, or people who have fallen behind on their payments because they have suffered some financial setbacks. These programs should help people stay out of foreclosure by restructuring their loans with a lower interest rate that the banks will have to absorb. Finally, lenders have learned that it costs way too much to carry all that real estate as foreclosed homes, and they started working with owners before the government loan modification programs were put in place. The new rules will make it easier for owners to stay in their homes as long as they qualify for the government regulations or the bank's requirements. Keeping the home is always the best thing to do because eventually the real estate market will come back and that asset will actually grow in value, and hopefully quickly once the recovery is underway.