If you don't qualify for a mortgage refinance, you may still be able to reduce your monthly payments. A loan modification is like a revised home loan; in most cases your lender adjusts the interest rate or the loan term (or both) to reduce your monthly payment.

When you ask for a loan modification, you'll need to provide a hardship letter (a letter stating why you need a modification), along with documents showing:

• Monthly gross income
• Your most recent tax return
• A breakdown showing your savings and other assets
• A breakdown showing your mortgage, second mortgages, credit card debt, and other loans

For more information about loan modifications, check out the Making Home Affordable website at www.makinghomeaffordable.gov.