ARM loan modification
Arm stands for adjustable rate mortgages, which can be very dangerous. Without warning the interest on your mortgage could pop up from 5 to 9 percent for example. That might not sound like much but it could end up being hundreds of dollars each month.
If you have an ARM loan and you are having trouble making your mortgage payments the first thing you should try to do is to talk with your lender. Tell them that you can not afford your payments under the current conditions and that you are willing to negotiate the interest rate of the loan you have.
If they do not budge, you will have to look into a loan modification. Under a loan modification you will be able to negotiate both the interest rate and or the principal you pay each month on your loan.
These are two options that you have if you have an ARM loan if you want to avoid foreclosure.