What is a loan modification

A loan modification is a change to your current mortgage loan in reference to a borrower's long-term inability to repay the loan. Loan modification; usually involves a lowering in the interest rate on the loan, and the extension of the term of the loans, a different type of loan or any combination of the three. In some cases lenders might be willing to modify a loan because the cost of modifying a loan is much less than the cost for a lender to buy back loans that are in default.

What a loan modification can do for you
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