Loan modifications, even with the Obama HAMP program started in March of 2009 aren’t always a “slam-dunk”.  They can be difficult to understand, exasperating to apply for, and, once approved (if your are one of the lucky ones) hard to maintain as the underlying problem leading to the mortgage modification has not been solved (you are still unemployed).

Remember, your lender doesn’t have to approve your mortgage modification.  The HAMP rules provide that if your lender will lose more money doing a modification, as compared to foreclosing on you, they don’t have to grant you the loan modification.

The good news is that other alternatives are available for those that can’t do a loan mod, but still find themselves unable to make their mortgage payments.  While these alternatives may still result in you not owning your home, they do provide you with some control over the situation.  The modification rules are set up to require your lender to offer you alternative resolution scenarios should the loan modification not work out.  The most common of these alternatives include a deed in lieu of foreclosure, or a short sale.  Yes, the conclusion of both of these alternatives is that you don’t own your house anymore.  However, they do give you a little control over your own destiny.