If you are currently unemployed or if your salary has been reduced then I suggest you contact your bank about getting a loan modification.  Some of you maybe asking doesn't this affect my credit score?

Well, if you are behind already your credit score has already been affected.  So no love loss there, it's better that you keep your home than worry about your credit score now.  You can bring your credit score back up when your finances are back to normal.  But, dealing with a foreclosure is a much worse situation.

Depending on your loan modification terms (for example 3 months) the bank will hold the funds in an account while they can make sure you can make your payments on time for the next 3 months.  After you went through the 3 month period successfully, they will apply the funds to your past due balance.  In the end your loan terms would have changed successfully and the remaining balance will be put on the end of your loan and it will cause your loan to become current.

So it is worth it to talk to your bank about a loan modification.  If you are not late on your loan yet the bank may not want to talk to you.  However, let them know early if you have been laid off because this will help!! Sometimes, the banks are slow and they loose paperwork so keep working at it.  If your bank is in your community go to the branch and talk to the branch manager about your problem they have to email their supervisor or regional vice president about the issue and it must be resolved.  So, if you are not getting resolution over the phone go to the branch.

Also, watch out for companies that say they can help you get a loan modification.  Save your money, your bank can help you with all this and you don't have to pay them to help you.  The majority of the time the banks will not deal with these loan modification companies because they are usually a rip off.

For more information, about credit repair and loan modification check out my new book @ www.thejomarcreditrepairguidebook.yolasite.com