Loan Modification is a change made to the terms of an existing loan by a lender. This is a process where the terms are modified outside the original terms of the contract agreed to and by the lender and borrower.
In order to qualify for a loan modification, you have to be suffering from a financial hardship, show you cannot afford your current mortgage payments, and show that you can stay current on a modified payment schedule.
If you cannot qualify for a loan modification, there are alternatives to a loan modification:
- Rate & Term Refinance to lower payment and interst rate
- Family Transfer
- Regular Sale or Short Sale
- Sell Property
- Foreclosure postpone service