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My husband and I are in the middle of requesting a loan modification from our lender Bank of America. I've heard so many negative things. Our credit, which is excellent, will suffer. They might reduce our interest rate, for a short term, or reduce our monthly payments for a short term, but they will add back any of those reductions to what we owe at the end of the loan. We are on Social Security and don't expect any increase in our income. So how can a modification help us? Should we continue with the request or just try to pay as we go? Any advice will be welcomed.- -Danielle and Josh

As with all financial products and strategies, there are pros and cons, said Certified Financial Planner Jubin Keyvan of Profitable Financial Strategies in Coral Spring.

Modifying your mortgage generally means working with your lender to change the terms of the note you signed when you bought your home or when you refinanced.

It may be a good tool to prevent foreclosure or as an alternative to doing a short sale.

However, modifying your mortgage will most likely damage your good credit.

You should proceed with very carefully.

First, you have to factor in that you may not qualify for a loan modification. The Obama administration's Making Home Affordable program for loan modifications is for people who have had a change in their economic circumstances – for example, a job loss or an illness. Since you said you have Social Security income, your income is probably stable and the lender would not agree to your request.

But there are other programs lenders can use to modify home mortgages.

Before you proceed, consider your goals and objectives. Ask yourselves: What are you trying to accomplish? What are the pros and cons of going down this road? And are you willing to accept the down sides?

Alternatives you should consider would include just refinancing the home with a new fixed mortgage. Interest rates for qualified borrowers with good credit are very low now.

Or, if you have sufficient equity in your home and you plan to live there for the rest of your lives, a reverse mortgage may make sense. A reverse mortgage is for people who are age 62 and older who want to tap the equity in their homes.

Keyvan recommends that you consult with some qualified advisors: including a bankruptcy attorney, a real estate attorney, your tax advisor and maybe even a financial planner. You may find that you have options you didn’t even know about.