Overview

A modification is when an agreement is reached between you and your mortgage company which changes the original terms of your mortgage. Usually when a mortgage is modified your monthly payments are reduced to a more affordable amount.

A modification may be an option if:

• You are unable to refinance
• You are dealing with a long term hardship
• You are currently behind on your mortgage or will be soon

How Does it Work?

How does it work?

A modification usually involves one or more of the following:

• Changing the type of mortgage loan
• Extending the term of the mortgage - 30 years to 40 years
• Permanent or temporary interest rate reduction
• Amortizing past due unpaid balance over the new term of the loan

Benefits

• Resolve your delinquency with your mortgage company
• Might reduce monthly payments to more affordable level
• Original mortgage terms are changed permanently
• Much less damage to your credit than a foreclosure
• Avoid foreclosure and stay in your home