If you are behind on you mortgage, and you are facing foreclosure you should consider a loan modification to possibly retain your home.

1 – Resolve your delinquency status with your mortgage bank
2 – You may reduce your monthly mortgage payments, making them more affordable
3 – Permanently change the original terms of your mortgage, giving you a more affordable fresh start
4 – Mush less damaging to your credit score than a foreclosure
5 – Avoid foreclosure; stay in your home

A loan modification involves one or more of the following:

A – Changing the mortgage loan type (e.g., changing an Adjustable Rate Mortgage to a Fixed-Rate Mortgage)
B – Extending the term of the mortgage (e.g., from a 30-year term to a 40-year term)
C – Reducing the interest rate either temporarily or permanently
D – Adding any past-due amounts, such as interest and escrow, to the unpaid principal balance, which is then reamortized over the new term

Don’t give up. You can successfully request a loan modification at any point while you have possession of the home. Even after final judgement. Never throw in the towel. Keep trying. Keep applying. Remember that the banks want to work with you!