Like most of the consumers most banks are finding it tough to cope with the ongoing economic crisis. Most banks are unsure as to how they will handle the crisis. Moreover, they are unsettled as to what criterion they should adopt for reporting loan modifications to the credit agencies. The highly shaky nature of the current economy means that a variety of unprecedented situations has come up and most banks find dealing with them a major challenge.
However, if you have not paid your loan payments for thirty days, banks will report your mortgage as default to the credit agencies. The glad news is that, any loan modifications will not degrade your credit; in fact, you can turn your mortgage into a fresh one with a loan modification.