This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments
Whether you should favor a loan modification over a short sale depends, in part, on the following:
• Your financial situation
• The willingness of the bank
• Your desire to keep your home
It becomes further complicated if the bank refuses to consider the present market value of your home. If you truly want to stay in your home, regardless of its value, then a loan modification might be the better option