Loan Modification
According to the government agency Freddie Mac, A Loan Modification is a written agreement between a person and their mortgage lender that permanently changes one or more of the original terms of their note to make the payments more affordable. Changes to your loan that lenders can make include:

  • Adding past due mortgage payments to the balance of your loan to bring you current.
  • Lowering your interest rate to a payment level you can afford.
  • Taking an adjustable rate loan and fixing the rate.
  • Extending the number of years for loan repayment.