You can have a bad credit and still can get a loan modification. This is a last solution for people with missed payments or who can not afford anymore to pay the mortgage at the usual rate.

Most people who think of a loan modification cannot have a traditional refinance. You need to qualify for a normal refinance and avoid foreclosure. There are four types of guidelines to qualify for : good credit, equity, employment and income.

Due to our current conditions when many people lose their jobs and they are stretched with their finances, it is hard to score all for. However, you may qualify for a bad credit loan modification instead.

So if you want to modificate your loan with your current lender than you can pass some of these obstacles. Your lender already checked before your credit score, so no need for that now. The equity could not be questioned as it is with the same lender.

Regarding the employment, the good news is that in case of loan modification they ask you just that you have a current income and not prove of employment for two years.

Income is very important to determine your eligibility for a loan. However, the most important part to get a modification loan is to say honestly how much you can afford to pay per month for your mortgage. This increases your chances of getting approved and avoids the foreclosure.

Some people get difficulty to obtain loan modification if they did not miss any monthly payments but they feel they need it. A good trick is to deal with a manager and not with a cleric which they do not have a decision power.