Q. Hi Moe,

I’m looking to walk away from my home, but I need to buy some time before we move.  Will a loan modification review stop my foreclosure?

A. Yes, in most cases, when you apply for a loan modification it can stall the foreclosure process.

It has been my experience in operating our forum for over three years, that homeowners can definitely stall the foreclosure process by attempting some type of loan work out with their mortgage servicer.  This can be applying for a trial loan modification under the Home Affordable Modification Program or HAMP and also applying for a short sale or even a deed in lieu of foreclosure.

I have personally witnessed borrowers that have tried to obtain a loan modification under legitimate needs, stay in their homes for well over a year and in some cases, two years.  Most of these people are actually trying to save their homes and not buy time to walk away. But what this indicates to me is that applying for a mortgage modification can definitely delay your foreclosure for some time.  I have seen it time and time again.

Please be aware, that we have also seen people get foreclosed on when they are in the loan modification process.  One thing is for sure, the homeowner is not in charge, nothing is guaranteed, and anything can happen when you try to get help from your mortgage servicer.  The best thing you can do, is hope for the best, plan for the worse and never get caught with your foreclosure pants down.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.