Can You Still Apply for Home Modification if Your House is in Pre-Foreclosure?

In short, the answer is yes. In fact, home loan modification programs are specifically designed for people in pre-foreclosure because they offer opportunities to avoid foreclosure and the pitfalls that come with that undesirable outcome.

A home in pre-foreclosure is simply a property that, for whatever reason, is facing foreclosure. It may be because the home is worth less than the amount still owed on the loan (which would make it underwater). It may also be that a homeowner is finding it difficult to make mortgage payments or has already missed one.

Regardless of the reason, loan modification programs exist to help remove part of the burden of keeping a home from the homeowner and replace it with a way to work with a lender to create a plan of action. The goal is to let you keep your house. This may be achieved by, say, lowering your monthly principal payment by extending the length of your loan. It may be achieved by lowering your interest rate. It may also be achieved by forgiving part of your debt altogether (although that option is a bit more rare).

No matter what path is chosen, loan modification programs are there to help people avoid foreclosure and keep their homes. You can and should apply for these programs if you want to keep your home and are facing the prospect of foreclosure (or are even in foreclosure); they could save your home for you and give you a way to move forward.

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