A loan modification is basically requesting that your bank or servicer modify or change the terms of the loan or the payments of the loan so that it’s more affordable. The most widely known modification is of course the HAMP, or the making homes affordable modification. That modification strives to make your payments to be about 31% of your income. If for some reason you don’t qualify for that specific modification, your servicer or bank may consider you for an in-house or other other program. If you’re unable to obtain a modification for some reason and you’re going through the foreclosure action, you may want to consider a deed in lieu or a short sale or even, worse case scenario, bankruptcy, but there are other options that you can consider.