Mortgage modification is the process of changing the terms of a mortgage agreement without having the loan refinanced. This is one of the loss mitigation steps often taken to try to prevent a foreclosure. If you're falling behind on your mortgage payments or you fear that you will because of job loss or other hardship, you can talk to your lender about getting a mortgage modification.
The best time to ask about a mortgage modification is before you've missed a payment or made a late payment. If you're going to ask about mortgage modification, you need to make sure that you have the right paperwork. You can't simply call up your lender and say that you're having trouble and ask that your mortgage be restructured. But you can ask to meet with them to show the hardship and to work on the modification.
You should be aware that a mortgage modification can help you save your house from foreclosure, but it also puts a bad mark on your credit. It can cause your credit card interest rates to go up and can see you turned down for any line of credit you apply for after the modification. Weigh the benefit of the mortgage modification against the drawbacks it can have on your credit before you make the decision to pursue it.