Posted on: 08th Jan, 2010 09:52 pm
What would happen if I were to default on the loan modification?
If you default on your payments, the lender will start the foreclosure procedure. If you're facing issues in paying off the loan, you should inform the lender about it. He may be able to help you with a different option. There are chances that depending upon your financial situation, the lender may give you a forbearance option wherein your payments would be reduced or suspended for a certain period of time.