What is a mortgage modification?

A mortgage modification is where the lender modifies the existing terms of your current mortgage.  These can be one or all of the following:

• interest rate
• principal balance (increase or decrease the balance owed)
• loan type (example: from adjustable to fixed rate)
• loan term (example: from 10 years to 5 years)
• capitalize past due amounts and roll these into the principal balance owed.

 
Depending on the borrower’s payment history and financial picture, a lender may decide that a modification makes business sense.  Loan modifications are typically the first option homeowners explore when they find they can no longer afford their mortgage payments.  A modification may allow homeowners to keep their homes with more affordable payments.
 
Find out if a mortgage modification makes sense for you.  Caroline Allison has helped homeowners avoid foreclosure.  Be sure and fill out the contact form, and Caroline will call you to discuss your situation and options.