Can a lawsuit result in a permanent loan modification?

Yes, so long as the bank that you’re working with is able to, through your financial disclosure packets, offer you that kind of loan modification. What’s important to know is we most often see loan modifications in the context of a mortgage bank foreclosure lawsuit. In that kind of lawsuit, it’s unique in the fact that a permanent loan modification can occur at the very beginning stages of a lawsuit, perhaps a few months after our client is served, in the middle of a lawsuit, leading up to a trial date, or even, and this is sometimes where people get a little scared, after a foreclosure final judgment is entered, but before a foreclosure sale occurs. In that sense, it’s never too late.