 mtgfixit
Joined: 13 Apr 2009
Posts: 73
28.05 Dollars($)
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 Posted: Mon Apr 13, 2009 3:38 pm Post subject: What is a Loan Modification and How Can I benefit? |
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| A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, it allows the loan to be reinstated, and results in a payment the mortgagor can afford. A modification is made to an existing loan by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender may be open to modifying a loan because the cost of doing so is less than the cost of default. |
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