If you are behind on mortgage payments and are considering a loan modification as a means to save your home with more affordable mortgage terms, it is important to understand the timeline and overall specifics of how home loan modification works. On average, a loan modification takes about 60-90 days. This is because most lenders have to go through a rather bureaucratic process of getting approval from management for every loan modification application. Moreover, most homeowners don't realize that the investors backing the loan must also approve the modification and this can be further complicated when the loan has been split between numerous investors or is held by an international company.
 
To start, you will be interviewed by your lender to come to a mutual agreement on the new terms of the mortgage. Your bank will ask you about your hardship and how and when you will rebound to become financially sound once again. The lender will ask about this to ensure that even once the new terms of the loan have been negotiated, you will have the ability to pay.

Then, once they have collected the necessary documentation, they will then send it through the ranks for approval. They will then make you an offer on your loan workout, which you can then decide will work for you or not. You can negotiate until you either have to settle for the terms provided or reach an offer that works for both of you. Your lender will then discuss their expectations with you to be sure that you fully understand the terms of your new loan. This is when a mediator of some sort would be beneficial, because the process of negotiation can be difficult. Someone who is more adept at the back and forth that occurs with a lender during any kind of loan modification can likely get you a better deal.

From that point, you will then sign any appropriate documentation and move on with your new payment amounts and schedule. Remember, this kind of leniency from your lender may not be repeated in the event that you fall behind again. So it is more important than ever than you remain as timely as possible on your mortgage payments.