Glossary
Loan Modification
A permanent change to loan terms, rate, term, or balance, to make payments sustainable going forward. A key tool for keeping a house.
A loan modification is different from forbearance (temporary relief) and reinstatement (bringing current). A modification permanently restructures the loan. Only your servicer can grant a modification, no third party can "pre-approve" you or guarantee one. The place to pursue it is your servicer's loss-mitigation department.
Read more in the Field Guide:
- Foreclosure Options: What's Actually Available, Foreclosure
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