Loan Modification:

Purposes of Loan Modifications

A loan modification has several purposes that make it useful and helpful for homeowners who are in danger of losing their homes to foreclosure. First, it permanently changes one or more of the terms of a mortgagor's loan. Second, it allows a loan to be reinstated. Third, it results in a payment the mortgagor can afford. Loan modification can be used to remove a loan from foreclosure, bring a loan current, or adjust the terms of a loan.

If any of the following apply, loan modification may be right for you:

  • -You want to avoid or stop foreclosure proceedings
  • -You've fallen behind on your mortgage payments
  • -You don't qualify for refinancing
  • -You need lower mortgage payments
  • -You owe more than your house is worth