What is Loan Modification?
Loan modification is a modification to an existing loan made by a lender in
response to a borrower's long-term inability to repay the loan
modifications.
A modification to an existing loan made by a lender in response to a borrower's
long-term inability to repay the loan. Loan modifications typically involve a
reduction in the interest rate on the loan, an extension of the length of the
term of the loan, a different type of loan or any combination of the three. A
lender might be open to modifying a loan because the cost of doing so is less
than the cost of default.
A large number of clients will find themselves using a Loan Modification Plan
to stop foreclosure. If you can currently make your regular payment, but you
can't catch up with the past-due amount, we will negotiate with your lender to
fold any past-due amounts, including interest and escrow, into the unpaid
principal balance. This new amount will be re-amortized over a new period of
time.
Or, if you are unable to make payments at this rate, we will negotiate with your
lender to extend your loan for a longer period of time, modifying the loan
amount to a more affordable level.
A Loan Modification will change your existing mortgage note and give you a fresh
new start in managing your home. Your account will be brought up to date
immediately.
For more information, please see our Frequently Asked Questions
