Is a loan modification as bad as a foreclosure on my credit? If so, should I even bother. My lender is not being cooperative at all and I am late on payment.

A loan modification is not as bad from a credit standpoint as foreclosure. Most reputable Lenders will discuss modifications with their borrowers or their agents if there is reason to believe that it will save the house and the account. You may have spoken to the wrong person. If you have equity available and you are facing financial hardship it makes sense to try a workout plan with the Lender's workout department. Engage an attorney specialising in residential modifications and do not pay a fee upfront. If you are foreclosed it will be at least 3 years before you can qualify again for a mortgage providing your credit has been perfect since the foreclosure. Foreclosure is not a good option if you can avoid it.

It depends if you have equity in the home. If you do, you should sell. If you dont, but you want to stay at the home I would talk to a bankruptcy attorney and have them talk to you about your options. Now that you are late on your mortgage your credit scores will drop fast. Once you have been late for 4 months in a row it will look like a foreclosure. I hope this helps. Any other questions let me know,Kyle Stancato

Hi Debbie,Because they technically do not report as a modification but that you may be late on your payment, it is not as damaging as a foreclosure. If your intent is to stay in the house, you should make an attempt to get it modified. If you choose to let the house go, you shoudl at least try the short sale route. As a real estate and mortgage broker here in California, I would be happy to answer any other detailed questions you may have. Feel free to call me at 888-PierWest(743-7937) X 701 or email me at Matt@pierwestcapital.comBest,Matt Davis