Mortgage
Modification

How Can "Loan Modification" Resolve Debt?

Loan modification is a restructuring of a secured loan, usually a mortgage, to incorporate missed payments, into a proposed "modification agreement". The new modification often has better terms - including a lower interest rate, a longer term and deferred arrears. Loan modification is often the main and most promising method of resolving distressed mortgage loan situations. However, because secured lenders have discretion as to whether to approve a loan modification, the application process can be challenging and is often benefited from experienced legal representation.