Loan Modification:

When to Seek a Loan Modification

As long as the foreclosure auction has not occurred, loan modification may still be an option for you as long as you meet your lender's loan modification requirements, even if you are not current on your payments. It is important to contact a loan modification lawyer as soon as possible in order to modify your home loan before you lose it to foreclosure. A loan modifcation attorney will make sure you know all of your legal options, and put his or her best effort into negotiating your loan modification and stopping the foreclosure of your property.

Missing mortgage payments will negatively impact your credit score and your ability to obtain financing in the future. However, if you are already behind on your mortgage payments it does not prevent you from negotiating a successful loan modification settlement. It is not advisable for homeowners to intentionally damage their credit score in order to obtain a loan modification. However, the farther you are behind in payments the stronger your case for modification with your lending institution may be. Banks often give priority to cases that are closest to foreclosure.

Loan modifications are typically negotiated within 30–90 days, but this can vary on a case by case basis.