You don't actually need to be behind on your payments to qualify for a loan modification – you just need to be able to demonstrate that you are facing a financial hardship that makes it difficult for you to make your mortgage payments, and that without a modification you would likely go into default. Lenders will likely look more favorably upon your application if you apply proactively before you start falling behind. However, if you are behind on your payments or facing foreclosure, a loan modification would halt the foreclosure process.