Be mindful of loan modification companies that tell you to stop paying your mortgage.
Ok, I’ve heard this one a lot and there is a lot of truth to banks only wanting to work with you if you are 3 months behind on your mortgage. Banks do this not to ruin your credit for not paying them back, but as a part of a system to prioritize which loans get modified first. Loans that have not been paid for more than three months recieve the most immediate attention.
Before I go any further, let me say up front I am in no way suggesting you not pay your mortgage but if you really need the banks attention, there is a way to do with out destroying your credit.
When you pay your mortgage, if you pay after the grace period (usually the 15th) but before the end of 30 days your banks will simply make an annotation on your account.
However, if you pay after 30 days the credit bureau will be notified. The key here is not to be more than 30 day’s late.
So if you really must get the banks attention, I’ve heard of many people paying between the 16th and the 29th day of the month for 3 months consecutively, and then contacting the bank about a loan modification.