Morgage Modifications

A loan modification is different from refinancing your mortgage.

Morgage modifications. A home loan or mortgage modification is a relief plan for homeowners who are having difficulty affording their mortgage payments. Refinancing entails replacing your loan with a new mortgage whereas a loan modification changes the terms of your existing loan. Basics of mortgage modification. A loan modification is a change that the lender makes to the original terms of your mortgage typically due to financial hardship.

Trustee and trustor in trust deed states. If you are offered a loan modification be sure you know how it will change your monthly payments and the total amount that you will owe in the short term and the long term. In general any loan can be modified and the process is referred to as loan modification or debt rescheduling. By geoff williams and dawn papandrea april 1 2020 by geoff williams and dawn papandrea april 1 2020 at 9 46 a m.

A mortgage modification is a significant change your lender makes to your loan terms when you are about to miss a payment or after you ve missed one or more mortgage payments. Lenders use different methods to modify mortgages but the main goal is to prevent foreclosure so you get to stay in your home and the lender avoids the expense of seizing and reselling the property. Modifications may involve extending the number of years you have to repay the loan reducing your interest rate and or forbearing or reducing your principal balance. The goal is to reduce your monthly payment to an amount that you can afford which you can achieve in a variety of ways.

Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower i e.