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Choosing a mortgage loan modification

Most people who own a home take out a mortgage in order to purchase it. For many people, it may also be the largest purchase they ever make. That’s why when an individual is unable to make the mortgage payment, it can leave him or her concerned about losing their home. A mortgage loan modification may be an option to consider.

Mortgage loan modification

A mortgage loan modification allows a borrower to change the terms of his or her existing loan. The borrower can ask the mortgage lender to extend the length of the loan, lower the interest rate or change the type of loan. Depending on the lender’s program, these changes can either be temporary or permanent.

If the modification is temporary, the lender may want to see that the borrower can make regular monthly payments on time before reinstating the borrower to the original loan terms.

In order to qualify for a mortgage loan modification, the borrower must already be in default or facing immediate default. Each lender has a different application process, but most will request proof of financial hardship. This could include evidence of a job loss, disability or illness, for example, that demonstrates the inability to repay the loan.


If the mortgage lender does not offer a mortgage loan modification, borrowers may still be able to request to refinance the loan. A refinance replaces the original loan with a new one.

Either option may help borrowers avoid foreclosure, which can be a lengthy process and can damage a borrower’s credit. If a borrower needs debt relief assistance, an experienced attorney can help.

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