Hi,The two most common ways to stop foreclosure are a short sale and a loan modification.

any sugestions?

No "modification".

My banker tells me that I can come in before conversion and for $250 loan modification fee can lock in another 5 years at prevailing rate.

Josh,There are two parts to the Homeowner Affordability and Stability Plan:Home Affordable Refinance Program (HARP) and Home Affordable Modification Program (HAMP).

When a homeowner is significantly upside down they don’t have any real options other than a short sale, loan modification or foreclosure.

If people could do that they wouldn’t need RE investors to bail them out.Has he looked at doing a loan modification instead?

But, they couldn't pay the obligation, payments or full amount, then, the loan would be months, perhaps years behind now, so the is no chance of reinstating the loan, even if a modification were ordered, the problem of defualt still exists and the process begins again.

Since the investors did not have appropriate staffing for loss mitigation scenarios like loan modifications and short sales, they pushed them through as quickly as possible.

There are a ton of scenarios so you really should speak to a pro.In my experience banks aren't very fast to give a modification on an investment property.