Negotiate directly with your lender to restructure your loan and roll missed payments into a new, affordable agreement.
Never call the general customer service line — they cannot approve modifications. Ask to be transferred to Loss Mitigation or Home Retention. Explain you want to apply for a loan modification to avoid foreclosure.
Ask them to send you the complete modification application. Most lenders have a specific form (often called a Borrower Assistance Form or RMA — Request for Mortgage Assistance). Get it in writing by email or mail.
Incomplete applications are denied automatically. Gather every item before submitting:
This letter explains WHY you fell behind. Be honest, specific, and show it was temporary. State what changed (new job, income restored, expenses reduced) and why you can now afford a modified payment.
Submit everything at once via the method your lender prefers (fax, mail, or online portal). Keep copies of everything. Send certified mail if mailing — you need proof of receipt.
Banks lose paperwork. Call every week to confirm receipt and check status. Document every call: date, time, name of representative, and what was said. This protects you if there's a dispute later.
You have the right to appeal within 30 days of denial. Request the specific reason in writing. You can also escalate to a HUD-approved counselor (free) who can advocate on your behalf and re-open the application.
Most lenders deny the majority of applications — especially if the borrower has no verifiable income. If approved, the new payment is often 30–50% higher than your original payment. This option works best if your hardship was truly temporary and your income has recovered.
If the bank says no — or the process is taking too long — you still have 3 other options to stop the foreclosure.