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If you do not pay the mortgage, the lender can foreclose on your property.
However, many lenders are taking drastic actions to reduce their bad debts and foreclosures. They have set up loss mitigation departments willing to make mortgages more affordable for those who are unable to pay their mortgages and to expedite workout plans.
That said, I am unaware of any lender that will voluntarily modify a loan that is performing. There is no incentive for the lender to modify a current loan. Typically, a loan will be sent to loss mitigation only if the borrower is behind in payments. Accordingly, you will want to consider falling 60-90 days behind on your mortgage before you approach the lender with a mitigation plan.
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