We can get into real trouble here because it's like suggesting fraud. I can tell you that at a recent seminar one of the former top loss mitigators for IndyMac said applying for a loan mod is just letting the bank know of everything you have. Consider whether or not the loan mod is really going to help, or just delay the inevitable. Also, check out the numbers of loan mods that are actually approved vs. applied for. Most people I know of who have successfully gotten loan mods went through a lot of hassle, and it didn't change a whole lot in their cirumstances.... more
One of the factors the lender looks at in deciding whether or not to give a loan modification, or to allow a short sale, for that matter, is whether or not there has been a "hardship" that makes it difficult or impossible for the borrower to continue to make the payments as originally agreed to. Now, you mention that you've suffered a 10% pay cut, and that would potentially be such a hardship event, but three years from now, you don't know what your pay will be, or whether a three year old pay cut would even qualify you for a modification. So you are probably better off discussing your situation with a HUD-approved mortgage counselor now, and not waiting until you can no longer pay your mortgage. You can go to http://makinghomeaffordable.gov and click on the "Find a Counselor" tab at the top of the page to find one near you. Since you are making payments, you may be eligible for a HARP refinance rather than a modification, but it all depends on the details of your situation. You should start talking with a counselor and your lender now, while the programs are available and your situation is not an all-out crisis.
And you'll see this advice on the MakingHomeAffordable website, but it bears repeating: BEWARE of foreclosure rescue scams. There are many people out there today who are looking for anxious homeowners to take advantage of. HUD-approved counseling is always FREE, and there is nothing that a company can do for a fee that you can't do yourself for free, or with the assistance of a HUD-approved counselor for free.