What is a loan modification?

A loan modification is a mortgage relief option that involves changing your interest rate or creating a different repayment schedule. It will not reduce the amount you owe on the balance of your mortgage but it will likely reduce your monthly mortgage payment. This allows you to reduce your monthly mortgage amount while preventing foreclosure. Typically, a loan modification is a foreclosure solution for borrowers that have experienced a financial hardship, such as loss of income due to illness or job loss. If you would like to find out more about loan modification and if it is the right solution for you, contact us today.