If you're suffering under financial distress and are being threatened with looming foreclosure, you may be able to request a loan modification from your bank. Loan modifications are alterations to the terms and conditions of your loan that can often result in reduced repayments. Lower payments can often mean you have more time to get your financial situation back on the right track and begin catching up any past due payments you may have.

Banks don't want to foreclose on your home. They actually make more profit from keeping you as a paying customer - after all, they make their profits from charging you more interest. So it's only logical that they want you to stay in your home and keep paying your loan. If this means they have to reduce your loan repayments to help you catch up, then they'll consider this if they really think it will help you.

Your bank will only consider approving a loan modification if they believe that making the changes on your loan will actively help your situation. This means you need to explain to them clearly what you intend to do to put your finances back in order. Your plan needs to be logical, feasible and realistic. If the bank feels you aren't likely to achieve any kind of progress based on your plan, then they're likely not to approve your modification request. When you submit your modification request, make sure you include a detailed plan of exactly how receiving modifications to reduce your payments will help your situation.