​A mortgage modification is a change made to the terms of an existing mortgage loan agreement between a borrower and a lender. The primary goal of a mortgage modification is to make the mortgage more affordable for the borrower by adjusting one or more of the loan terms. This can be especially helpful for homeowners who are struggling to make their monthly mortgage payments.

Here are some common changes that can be included in a mortgage modification:

1. Interest Rate Reduction: One of the most common modifications is lowering the interest rate on the mortgage. This can result in lower monthly payments for the borrower.
2. Extended Loan Term: Extending the loan term by adding more years to the repayment period can also reduce monthly payments. However, it may increase the total interest paid over the life of the loan.
3. Principal Forbearance or Forgiveness: In some cases, a lender may agree to temporarily reduce the amount of principal owed (forbearance) or forgive a portion of the principal to make the loan more affordable.
4. Capitalization of Arrears: If the borrower has fallen behind on payments, the missed payments can be added to the loan balance and repaid over time.
5. Conversion from Adjustable-Rate to Fixed-Rate: Converting an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide more payment stability for the borrower.
6. Deferral of Payments: In certain situations, a lender may allow the borrower to defer a portion of their payments for a specific period, which can provide temporary relief.
   
   

Mortgage modifications are typically pursued by borrowers who are facing financial hardship and are at risk of defaulting on their mortgage. To request a modification, borrowers usually need to work closely with their lender or loan servicer. Lenders may require documentation of the borrower's financial situation and a hardship letter explaining why the modification is necessary.
It's important to note that mortgage modifications are not guaranteed, and eligibility criteria can vary depending on the lender and the specific mortgage program. Additionally, a mortgage modification may have implications for the borrower's credit score and overall financial situation, so it's essential to carefully consider the terms and consequences before proceeding with one.

Speak To A Foreclosure Avoidance Specialist Now

By pressing "Submit & Accept Terms," you expressly consent to receive marketing communications about your inquiry from eXp Realty, The Joel & Kim Team and our agents, at the email address and telephone number you provided, which marketing communications may be delivered via email, telephone, and/or text messages, including using an automatic telephone dialing system and/or an artificial or prerecorded voice. Your consent is not a condition to using any of our services, and you may revoke it at any time by replying "STOP" to any of our texts or by unsubscribing to any of our emails. Message and data rates may apply. By pressing "Submit & Accept Terms," you also confirm that you have read and agree to our Privacy Policy and Terms of Use.