A loan modification can allow you to keep your home and avoid foreclosure after falling behind on your mortgage, but it's not necessarily all roses. In fact, there are some downsides to loan mods that your lender may not go out of their way tell you about.
If you don't know, a loan modification is a permanent change to one or more of the terms of your mortgage, such as the term, interest rate, and monthly payment.
A loan modification is often the only hope many homeowners have to keep their home following a default. They can be great, however if you need one, you should be aware of the following: